Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, with reference to paragraphs 7.2 to 7.4 of her Department’s publication entitled Final stage impact assessment: Improve access to Statutory Sick Pay by removing the Lower Earnings Limit and removing the waiting period, published on 21 October 2024, what estimate she has made of the proportion of sickness absences that last at least four weeks; and what average length of sickness absence was estimated to calculate the annual cost of Statutory Sick Pay for businesses.
There is no administrative data collected or recorded when an employee takes a sickness absence. The best evidence available uses findings from the Employee Survey (Employee research Phase 2: Sickness absence and return to work. Quantitative and qualitative research: https://assets.publishing.service.gov.uk/media/64108286d3bf7f02f6e38078/employee-research-phase-2-sickness-absence-and-return-to-work-quantitative-qualitative.pdf.)
The survey showed that 64% of respondents had no sickness absence. Of those that do have a sickness absence, 13% of those who have a sickness absence reported an absence of more than 3 weeks. The majority of sickness absences were for up to a week (57%) followed by between 1 to 2 weeks (20%), and between 2 to 3 weeks (10%). These figures demonstrate that when workers took sickness absence, it was usually for a short period of time.
Of those who have had a sickness absence, many would receive Occupational Sick Pay. The Employee Survey findings suggest 57% of employees said they would receive OSP, while a further 9% said they would receive some combination of both SSP and OSP. 26% would receive SSP, while the remaining 8% do not know.
The estimated cost to business of SSP reforms is derived from a simulation model that incorporates raw sickness absence data from the DWP Employee Survey 2023 alongside characteristic information from the Family Resources Survey. (Family Resources Survey: financial year 2022 to 2023 - GOV.UK)