In a landmark shift for UK employment rights, up to 9.6 million workers are set to benefit from significant changes to statutory sick pay rules, according to an analysis by the Trades Union Congress (TUC). The reforms, which take effect from Monday, mark a major departure from previous policies and are part of the broader Employment Rights Act 2025.
Key Changes to Sick Pay Entitlements
The TUC reports that approximately 8.4 million workers who rely on statutory sick pay—the minimum amount employers must provide—will now be paid from the first day of illness, rather than waiting until day four as under the old system. This adjustment is expected to alleviate financial strain for many households, particularly those on lower incomes who have historically faced difficult choices between working while sick or forfeiting essential wages.
Expanded Eligibility for Low Earners
Additionally, 1.2 million workers previously excluded from statutory sick pay due to earning below the £125-a-week threshold will become eligible for the first time. This expansion is projected to disproportionately benefit women, who are overrepresented in lower-paid and part-time roles, as well as disabled employees and younger and older workers. The TUC emphasises that this move will help reduce economic inequalities and support vulnerable groups in the workforce.
Political and Public Support
The Labour government's policy has garnered widespread approval, with a TUC survey indicating that 76% of respondents support providing sick pay from day one. This cross-party popularity underscores the public's recognition of the need for enhanced worker protections in the current economic climate.
Business Concerns and Economic Pressures
Despite the broad support, some employers have expressed growing frustration with the new rules. Neil Carberry, chief executive of the Recruitment and Employment Confederation, warns that the changes, coupled with other financial burdens such as increases to the national minimum wage, payroll tax hikes, and energy price rises linked to the war with Iran, are placing significant pressure on already stretched balance sheets. Carberry states that businesses are at a "tipping point," with many forced to cut staff or raise prices to manage costs. He also raises concerns about potential fraud, urging for better guidance to accompany the sick pay adjustments.
Broader Implications of the Employment Rights Act 2025
The sick pay reforms are part of the first tranche of rights introduced under the Employment Rights Act 2025, which also includes new protections against sexual harassment, enhanced parental leave provisions, and measures to strengthen trade union recognition. These comprehensive changes aim to modernise UK employment law and improve conditions for workers across various sectors.
As the new rules come into force, the impact on both employees and employers will be closely monitored, with debates likely to continue over balancing worker welfare with business sustainability in a challenging economic environment.
