Sick Pay

Lord Hendy Excerpts

Monday 17th January 2022 Lords Chamber

Asked by

[Lord Hendy]

To ask Her Majesty’s Government what assessment they have made of the report by the Chartered Institute of Personnel and Development What should an effective sick pay system look like?, published on 14 December 2021.

[The Parliamentary Under-Secretary of State, Foreign, Commonwealth and Development Office and Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

The CIPD report makes a number of interesting points on SSP, many of which had been raised previously by other stakeholders and continue to be assessed by officials. Last year, the Government made clear that the pandemic was not the right time to introduce changes to the rate of SSP or its eligibility criteria. However, as we learn to live with Covid-19, we are able to step back and take a broader look at the role of statutory sick pay. I can confirm to noble Lords and the House that this work is ongoing, but I am not able to give a timescale for when it will be completed.

[Lord Hendy (Lab)]

My Lords, I am most grateful to the Minister for her Answer, but the fact is that nobody can live on £96.35 per week—the rate of statutory sick pay—and the lower earnings limit excludes 2 million workers from receiving even this. Both features pose a public health risk by disincentivising those sick or who should be self-isolating from staying away from work. The report of the CIPD, a highly respected body representing human resource professionals, is formidable. It finds that 62% of British employers think that SSP is inadequate. In the light of that, will the Minister agree to look into increasing the rate of SSP and at the other recommendations? There are too many to summarise now, but they include removing the lower earnings limit, improving employer compliance and including the self-employed.

[Baroness Stedman-Scott (Con)]

I understand exactly the sentiment the noble Lord raises his question with. I can confirm again that work is ongoing to look at the role of SSP and all the CIPD recommendations. As I said, I am not able to give a timeline for this, but I will go back to the department and stress the noble Lord’s keenness to do this work.