BusinessEuropeNews

Government Urged to Raise Sick Pay as 1.6M Unable to Afford Bills

In a scathing report, Citizens Advice has revealed that the UK government’s proposed changes to statutory sick pay (SSP) in the upcoming employment rights bill will still leave a staggering 1.6 million low-income workers unable to afford essential bills if they fall ill and have to rely on SSP for just four weeks. The charity is urging ministers to significantly raise the basic SSP rate, which currently stands at a paltry £3 per hour – one of the lowest rates in the developed world.

Millions at Risk of Financial Hardship

The report found that even with the government’s planned improvements to SSP, a shocking 78% of the lowest-paid workers – equivalent to 1.6 million people – would be unable to cover their necessary expenses if they had to depend on SSP for a month. This stark reality has prompted charities to warn that the proposed reforms simply do not go far enough in protecting vulnerable employees from the “huge cliff-edge” of lost earnings when they become ill.

Stingy Sick Pay Rates

The UK’s statutory sick pay is notoriously low compared to other developed nations. At just £118.75 per week, or £3 an hour, it is a far cry from providing a livable income. According to the Resolution Foundation, someone working full-time on minimum wage would lose a staggering 70% of their earnings if they had to rely on SSP for a single week.

We will continue to see people driven into hardship and debt when they get sick, or working through injury and illness when they should be recovering.

– Tom MacInnes, Director of Policy at Citizens Advice

Proposed Reforms Fall Short

While the employment rights bill does address some longstanding issues with SSP, such as making the lowest-paid workers eligible and paying from the first day of illness instead of the fourth, critics argue that these changes are simply not enough. Citizens Advice is calling for the government to increase SSP to a percentage of the national living wage or a share of the worker’s earnings, rather than the current flat rate.

  • Over 7 million UK workers rely on SSP when they fall ill
  • 12% of workers helped by Citizens Advice with SSP had to use a food bank
  • 1 in 5 needed additional charity support to get by

Real-Life Consequences

The human cost of inadequate sick pay is all too real. Take the case of Alan Barton, a 65-year-old engineer who had to rely on SSP for four months while undergoing cancer treatment. Despite paying taxes throughout his 40-year career, the meager SSP barely covered a third of his rent, let alone other essential expenses. Barton’s story is just one of countless others highlighting the urgent need for reform.

Ministers need to listen to the stories of the countless ordinary people affected. Working people shouldn’t have to choose between harming their health by going back to work too early or paying the bills.

– Alan Barton, affected by low SSP

A Call for Action

As MPs prepare to scrutinize the employment rights bill this week, charities and affected individuals are united in their message: the government must take bold action to protect the most vulnerable workers. Increasing SSP to a livable rate, such as matching statutory maternity pay, would provide a vital lifeline to those who cannot afford to fall ill under the current system.

The UK prides itself on being a compassionate, developed nation, yet its treatment of sick workers falls woefully short. It is high time for ministers to heed the warnings, listen to the stories of hardship, and take decisive action to ensure that no one is forced to choose between their health and their financial security. The employment rights bill presents a critical opportunity for change – one that must not be squandered.