Statutory Sick Pay: Small Businesses

(asked on 28th October 2016) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the capacity of small businesses to pay statutory sick pay for up to 28 weeks.


Answered by
Penny Mordaunt Portrait
Penny Mordaunt
Lord President of the Council and Leader of the House of Commons
This question was answered on 7th November 2016

It is important that employers are responsible for providing employees with a measure of income replacement when they are unable to work rather than the cost falling to the tax-payer through the State benefits system.

Before introducing regulations that affect small businesses, all Departments are required to consult with them. This includes an assessment of the likely costs of complying with the change and enables unnecessary burdens to be identified before decisions are made on whether to proceed.

The Government recognises the challenges that are faced by employers and that there isn’t a ‘one size fits all’ solution on the health and work agenda. On Monday 31st October the Government published “Improving Lives, the Work, Health and Disability Green Paper”. This starts a consultation that will run until 17th February 2017.

We will use the Green Paper as an opportunity to understand how best we can help employers of all sizes take action on a range of areas. This includes seeking views on whether Statutory Sick Pay should be reformed to encourage supportive conversations between the employer and employee and make it easier for people to have a phased return to work. Any proposals for change following consultation will include an assessment of the impact on business.

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