Statutory Sick Pay

Debate between Imran Hussain and Jim Shannon

Tuesday 22nd April 2025 Westminster Hall

[Imran Hussain (Bradford East) (Lab)]

I beg to move,

That this House has considered the rate of Statutory Sick Pay.

It is a privilege to serve under your chairmanship, Mr Stuart.

Successive Governments have grappled with statutory sick pay, with report after report saying that we need fundamental, root-and-branch change to a system that is letting workers down every day. Frankly, successive Governments have failed to tackle this important issue head-on, with many actively avoiding or dodging it.

I am therefore glad that, within their first 100 days, this Labour Government delivered on our pledges and introduced a transformative, once-in-a-generation Employment Rights Bill to drag workers’ rights into the 21st century. Although the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), who is largely responsible for the Bill, is not here today, I put on record my thanks to him. In a previous role, I had the pleasure of working alongside him in developing much of the policy outlined in the Bill, which will mean that workers’ rights in our country are fit for purpose.

The Bill makes welcome changes to statutory sick pay. In 2022, a Trades Union Congress survey found that 80% of those earning more than £50,000 a year receive their full pay when sick, compared with only a third of those earning under £15,000. Around half of all employees in the UK get their full pay, just under a third get statutory sick pay, and one in 10 gets nothing at all. Most low-paid employees—around 8 million—are in the middle group, reliant on statutory sick pay.

For those workers, the measures in the Employment Rights Bill are much welcome: removing the three-day waiting period so that workers are eligible for sick pay from day one; removing the lower earnings limit and extending sick pay eligibility to 1.3 million of the lowest-paid workers currently denied it due to the lower earnings limit of £123; and setting the 80% earnings replacement rate. However, as the TUC, the safe sick pay campaign and many others have said, we must not stop here. We must continue to be ambitious in strengthening workers’ rights.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for securing a debate on this critical issue. In my constituency and probably his, many small and medium-sized businesses are struggling—let us be honest—with the rise in national insurance contributions. Does he agree that, building on Labour’s Employment Rights Bill, the Minister and the Government might need to step in to ensure that such businesses, which are facing rising national insurance contributions, can still deliver statutory sick pay for their small group of employees?

[Imran Hussain]

Absolutely. I agree with the hon. Gentleman. He makes an important point that I will address more substantially later in my speech. He will also understand that having a healthier workforce and limiting presenteeism would massively increase the productivity of those small and medium-sized businesses in the long run. One of the huge issues we currently face is that people who are too sick to work are being forced to do so, because of the lack of support. That is not good for them or for businesses.