Sick Pay Overhaul Extends Rights to Millions of UK Workers
Sick Pay Overhaul Extends Rights to Millions of UK Workers

Up to 9.6 million UK workers are set to benefit from changes to sick pay rules that came into effect on Monday, according to analysis by the Trades Union Congress (TUC). The reforms, part of the Employment Rights Act 2025, include paying statutory sick pay from the first day of illness rather than the fourth, and extending eligibility to lower-paid workers.

Approximately 8.4 million workers currently receiving statutory sick pay will now be paid from day one, while 1.2 million workers previously excluded because they earned below the £125-a-week threshold will become eligible. The TUC said the changes disproportionately benefit women, disabled employees, and younger and older workers, who are overrepresented in lower-paid and part-time jobs.

The TUC highlighted that the policy removes pressure on lower-income households, who previously faced a choice between working while ill or losing pay. The union also noted that 76% of voters support the measure, according to a survey.

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However, some employers have expressed concern. Neil Carberry, chief executive of the Recruitment and Employment Confederation, warned that businesses are already grappling with rising minimum wage, payroll tax hikes, and energy price increases. He said the changes could cause “chaos” without better guidance for firms, and that a small minority of workers might attempt fraud.

The reforms are part of the first tranche of rights under the Employment Rights Act 2025, which also introduces new protections on sexual harassment, parental leave, and trade union recognition.

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