The Minister for Disabled People, Health and Work (Justin Tomlinson)
I thank the hon. Member for Leeds East (Richard Burgon) for securing this debate.
We have been facing the most serious public health emergency in a generation since the beginning of the pandemic, and the whole of the UK has joined together in a great national effort to face this challenge. Throughout the pandemic, the Government have done, and will continue to do, whatever it takes to fight the virus and get our nation through these difficult times. This Government have a strong safety net in place, and we took action to strengthen it for those who need it most. As part of that action, we introduced the coronavirus job retention scheme and the self-employment income support scheme, increased the universal credit standard allowance by up to £1,040 this financial year, and extended statutory sick pay to those who are self-isolating or shielding in line with the latest Government health guidance. We also went further and made SSP payable from day one instead day four for anybody who is sick, self-isolating or shielding due to coronavirus.
Taken together, these measures help to ensure that employees do not attend work when they should be staying at home, helping to keep themselves and others safe. Where clinically extremely vulnerable individuals are not able to work from home and shielding advice is in place, they should not attend work. Statutory sick pay is available to those who are unable to work, and is intended to be a safety net in cases where their employer chooses not to furlough them under the coronavirus job retention scheme and does not have other suitable policies in place.
Jim Shannon (Strangford) (DUP)
In my constituency, quite a number of employers did not buy into the furlough scheme, and sick pay simply does not cover costs. I understand that the Minister is always very responsive to the issues; he always has been in any debates that I have been in, and I hope that he will be to this one. Will he and the Government consider grants or a help scheme for those who have got into debt just to feed and heat themselves at this particularly difficult time?
Justin Tomlinson
I thank the hon. Member, who I know from several debates to which he has contributed cares passionately about those in most need in his constituency. I am meeting the First Minister of the Northern Ireland Assembly next week to discuss a number of issues, including this, and I will set out in my speech the wider support that I know he will be looking to champion, and rightly so.
Clinically extremely vulnerable individuals are currently being advised to shield until 31 March. We expect employers to do the right thing and help their employees in following public health guidance. That is underpinned by the clear guidance issued by the Department for Business, Energy and Industrial Strategy, ACAS and the Health and Safety Executive to help employers make workplaces covid-secure. Where individuals have concerns about their health and safety at work, they should raise them directly with their employers or with staff representatives, HSE or their local authority.
The Government have also provided a comprehensive economic response that is one of the most generous globally, taking unprecedented steps to protect people’s income and support businesses, most notably through the coronavirus job retention scheme. We know that this has been a difficult time for businesses too, with many experiencing increased levels of absence due to employees needing to self-isolate. Any increase in the rate of SSP during the pandemic would have placed an immediate, direct financial burden on employers at a time when we know that many of them are struggling. That could have put more jobs at risk.
Many of those earning below the lower earnings limit who are not eligible for SSP are already in receipt of benefits, meaning that the welfare safety net is the most efficient way of providing targeted further financial support. Statutory sick pay should not be looked at in isolation. It is the minimum level of income replacement that employers must provide to eligible employees, and the majority of employees receive above the statutory minimum. Those who require further financial support while unable to work have been and will continue to be supported by the Government. For example, where someone’s income is reduced while on SSP, they may be able to claim universal credit. Where they are not eligible for SSP, they may be able to claim UC and new-style employment and support allowance. For ESA, we have removed the seven waiting days for claimants affected by coronavirus, so it is payable from day one of the claim.
For the millions of hard-working people who are self-employed, we continue to provide generous support through the self-employment income support scheme. The minimum income floor in universal credit has been relaxed for the duration of the crisis, which means that where self-employed claimants’ earnings have fallen significantly, their UC award will have increased to reflect their lower earnings.
Beyond the welfare safety net, we have also introduced a number of unprecedented packages of support to put money directly into the pockets of those who are in most need. We are providing financial support to self-isolate to those on low incomes through the £500 test and trace support scheme, alongside £35 million being made available to local authorities for discretionary payments to support those on low incomes who cannot work from home if they are required to self-isolate because they have tested positive for coronavirus or have been identified as a contact of someone who has.
We have worked closely with local authorities to monitor the effectiveness of the scheme since it launched in September 2020 and have listened to feedback from charities and support groups on the frontline. I welcome the changes to the eligibility criteria to include a parent or guardian who is staying off work to look after a child who is self-isolating. We will also be making an additional £20 million available for discretionary payments every month from March until the end of the scheme, which has been extended until the summer. Employers can also furlough employees who are on long-term sickness absence or have been advised to shield.
At tomorrow’s Budget, the Chancellor will set out the next phase of our economic support package, reflecting the Prime Minister’s road map to ease restrictions published last month and tailoring support for individuals and businesses to reflect the changing public health restrictions. The actions that this Government have taken were the right ones to respond to the immediate short-term pressures that the pandemic presented, but it is right that we also think about the longer term.
As the Minister for Disabled People, I welcome the opportunity to highlight the “Health is everyone’s business” consultation, in which we sought views on the rate of statutory sick pay and the role that employers can and should play in supporting employees who are disabled or have long-term health conditions to stay in and thrive in work. We have explored how long-term reform of SSP could support the Government’s ambition to reduce ill health-related job loss and drive transformational change, so that those managing long-term health conditions can live and work well. I cannot stress enough the importance of that work. One in five people in this country have a disability or health condition, and the vast majority of them will get that while they are of working age. It is therefore absolutely right that we review and look at the ways we support both employees with changing health conditions and employers to do the right thing.
Jim Shannon
I thank the Minister for giving way again. One thing that is very much an issue in my constituency—it probably is in the constituency of the hon. Member for Leeds East (Richard Burgon) as well—is mental health. When it comes to accessing all those benefits, there is absolutely no doubt that mental health and anxiety issues are one of the greatest crises we have had for a long time. Can the Minister and his Department offer help to those people with anxiety or depression or wellbeing issues?
Justin Tomlinson
The hon. Member, with laser-like precision, has identified one of the key issues. For those employees who have a fluctuating health condition—for example, mental health—one of the inbuilt challenges of the system is that someone is presumed to be either 100% fit for work or 100% sick, which stops them dipping in and out or having phased returns to work. Also, while society’s awareness of issues around mental health and mental wellbeing is significantly improving, there is not an easy guidebook that any employer—particularly small and medium-sized employers—can simply take off the shelf and then know exactly what to do. Therefore, we must look to address the issue of 100% fit or 100% sick to allow for that phased return as well as significantly improve the guidance and support for employers to ensure that people do not drop out of work. We recognise that work is good for people’s health, and it is significantly harder to help somebody back into work, dealing not only with their health condition but with the loss of confidence from losing their job, than it is to provide that support earlier on.
SSP maintains an important link between the employee and their employer during sickness absence while providing a level of income replacement for such a period. That is why the consultation set out that we are minded to extend SSP to those earning below the lower earnings limit, who are not currently eligible for financial support from their employer during a period of sickness absence. I think this is an area where the Government and the hon. Member for Leeds East would agree: it is important that there is a link, regardless of the number of hours that an employee works with their employer, because it is a partnership to deal with short-term, medium-term or long-term health conditions for the benefit ultimately of the employee but also the employer. We know that good work is good for one’s health and that work can play an important role in a recovery.
The consultation also proposed changes to SSP rules to allow for fully flexible phased returns to work, as I have set out, with SSP being paid alongside an employee’s wage. That can be beneficial for both the employer and the employee. We know that many employers are already taking positive action to support their employees to remain in work, but many businesses—particularly small and medium-sized organisations—need access to improved information and advice on how to better manage health in the workplace. We want to ensure that employers are supported and equipped so that they can do the right thing by their employees, and many of them wish to do so. We will publish the findings shortly.
Crucially, as we begin to build back better, employers will have a vital role to play in creating workplaces in which all employees can thrive. It is by working together that we can truly transform the lives of disabled people and those with health conditions. The benefit of that will be felt by all, so we must each play our part. I welcome the points made by the hon. Member for Leeds East. This is something that we will all continue to focus on.
Question put and agreed to.