British businesses could collectively save up to £2bn per year under proposed reforms to statutory sick pay (SSP), according to new analysis by the Trades Union Congress (TUC). The changes, currently under government consideration, would shift more responsibility for sick pay onto employers.
What the reforms would change
The key proposals include:
- Extending the period before SSP kicks in from 3 to 7 days
- Requiring employers to cover the first week of sick pay
- Maintaining the current £109.40 weekly SSP rate
Business benefits vs worker concerns
While the Treasury estimates these changes could save businesses £1.7bn-£2bn annually, unions have raised significant concerns. The TUC warns that:
- Low-paid workers may be forced to choose between health and income
- The changes disproportionately affect sectors with high staff turnover
- Workers in precarious employment could be particularly vulnerable
"These reforms risk creating a two-tier workforce where those in insecure jobs can't afford to be ill," said a TUC spokesperson.
Government position
The Department for Work and Pensions maintains that the changes would strike a balance between supporting businesses and protecting workers. A government spokesperson stated: "Our reforms aim to create a system that's fair to both employers and employees while ensuring the long-term sustainability of sick pay."
