The Government consulted on strengthening Statutory Sick Pay (SSP). This followed the publication of the Employment Rights Bill (see Advisory Bulletin 728), which contains provisions on SSP, including the removal of the qualifying Lower Earnings Limit (currently £123 per week). This means lower-paid workers will also be eligible for SSP, at the rate of the lower amount of £116.75 per week (subject to an annual review) or a “prescribed percentage” of the employee’s normal weekly pay.
This consultation concerned what that percentage should be.
The consultation closed in December 2024, and in March 2025 the Government published its response, which provides that the percentage will be set at 80 per cent of normal weekly earnings. Therefore if 80 per cent of earnings is lower than the flat rate of SSP the employee will be entitled to the 80 per cent figure. If 80 per cent of earnings is higher than the flat rate of SSP the employee will be entitled to the flat rate.
The rates of SSP for lower paid workers is not expected to have a substantial impact on local authorities, as lower-paid workers will already in many cases be entitled to contractual sick pay (including under the Green Book) at full pay for periods ranging from one month up to six months. However, it may have an impact in respect of some local authority workers, and on workers where work has been outsourced.