More than a million UK workers cannot claim statutory sick pay (SSP) because they fail to meet the earnings threshold of £123 per week, leaving them vulnerable to feeling pressured to work while ill and burnout, new analysis has found.
The research, from the Work Foundation at Lancaster University, revealed that of the 1.15 million UK workers who do not earn enough to claim SSP, women account for 69.2 percent. A third, 33 percent, are disabled and 52.4 percent are young workers aged 16-24.
The foundation said that the issue is compounded by the number of businesses who only offer the statutory minimum.
Limits of SSP
A survey of more than 1,000 senior business leaders, commissioned by the foundation, found that 47 percent of employers provide the statutory minimum level of sick pay. And statutory pay covers just 17 percent of a worker’s average weekly earnings when they are off sick.
Results also revealed that only 27 percent of employers offer an SSP policy that either ‘moderately’ or ‘substantially’ exceeds statutory requirements.
Most senior business leaders, 43 percent, said that financial constraints were the reason for not offering more than statutory level pay.
Almost a third, 31 percent pointed to the challenges of compliance with legal requirements, another 31 percent highlighted the perceived impact on staffing levels if they offered enhanced sick pay and 28 percent cited the administrative burden and complexity as an issue.
Workforce getting sicker
Alice Martin, head of research at the Work Foundation, said: “The truth is our workforce is getting sicker and yet not everyone gets the time off they need to live healthy lives.
“The current low rate of sick pay compels some people to work while they are unwell to make ends meet. This risks compounding existing health conditions and can lead to people dropping out of the labour market altogether.
“We currently have a record 2.83 million people economically inactive in the UK due to long-term health issues – and our previous research suggests many of these people want to work but aren’t given the necessary support to do so.”
Less annual leave
Access to sick pay is not the only area where people on lower incomes miss out. The foundation also found that lower earners have less access to paid time off.
Further analysis of Office for National Statistics data found that in 2022, employees with higher-than-average earnings of £32,882 per year had, on average, two more days of annual leave entitlement than those with below-average earnings.
Researchers warned that this reduced access to sick pay and annual leave can create a “vicious cycle” for people on lower incomes as they find themselves having to risk their health by having less time away from work for holidays and other types of leave.
“Forecasts suggest that a growing number of workers will be grappling with major illnesses year on year,” Martin said. “It is imperative that the next government works with employers to create an effective plan to enable workers to have healthier working lives – or the UK’s sickness crisis is likely to worsen. This includes ensuring people have time off to rest and recuperate.”
Ahead of the general election, the foundation has called on the next government to reform SSP by removing the lower earnings limit, enabling it to start on day one of illness, and including greater flexibility to support a phased return to work.
It has also called for a roadmap to be set up to increase SSP to 60 percent of usual wages or the equivalent of the real living wage, and for the provision of a rebate to support smaller employers.
The full findings of this analysis are detailed in the report: ‘Time off: Redesigning leave policies to support longer, healthier working lives’.
