UK Workers Face ‘Unliveable’ Sick Pay Despite Reforms, Campaigners Warn

UK sick Pay Rates Lag Behind Developed Nations: millions Face financial Hardship

Despite recent government efforts to improve employment rights, the UK continues to offer some of the weakest protections for unwell workers among developed nations.Millions of contracted workers face the prospect of earning the equivalent of as little as £3 per hour when ill.

The Current State of Statutory Sick Pay (SSP)

Currently, approximately one in four UK workers, totaling around 7 million people, are only entitled to Statutory Sick Pay (SSP) instead of more generous employer-provided sick pay. SSP provides a fixed rate of just £116.75 per week, or £467 per month, for eligible workers.

Inadequate Coverage and Impact

Dr. Matt Padley from Loughborough University emphasizes that the current SSP rate is “not enough to live on,” leading to critically important financial strain. “Anyone having to rely on SSP for any length of time is highly likely to see a ample drop in their income… the gap between income and what’s needed to live with dignity will grow.”

New Legislation: A Step Forward, But Not Enough

The government’s new Employment Rights Bill extends sick pay to workers earning under £123 a week from day one of their illness, paying 80% of their average weekly earnings or £116.75 SSP, whichever is lower. While this expands eligibility to an additional 1.3 million people, a staggering 8.3 million in the UK will still receive far less than the living wage when sick.

• working 35 hours per week, SSP equates to approximately £3.33 per hour.
• For those working 40 hours, this drops to a mere £2.91 per hour.

This disparity highlights the urgent need for more comprehensive and equitable sick pay policies.

Real-Life Struggles: The Human Cost of Low Sick Pay

Danny Hine-Berry, diagnosed with Hodgkin lymphoma in 2022, experienced firsthand the inadequacy of SSP. “It left me in a lot of financial difficulty… I had kind of all these worries and stress about money on top of my physical health problems.” He received just £96 per week at the time,making it nearly impossible to cover basic living expenses while focusing on recovery.

Danny Hine-Berry faced financial hardship during his cancer treatment.

International Comparisons: The UK Falls Short

Analysis reveals that the UK ranks poorly among European countries in terms of statutory sick pay rates provided by employers. The UK’s SSP is just over a quarter of the minimum weekly wage for a full-time worker, and a third of the take-home minimum pay.

In contrast, most european nations mandate that employers cover more than 50% of an employee’s existing salary during sick leave, with some countries, like Iceland, Norway, and Luxembourg, providing 100% salary coverage.

Regional Disparities and Deprivation

The impact of low sick pay disproportionately affects areas with higher levels of deprivation. It’s estimated that a significant number of workers in regions like Hampshire (161,000) and Essex (160,000) are only entitled to SSP. Cancer patients and other individuals suffering from serious illnesses in these areas are particularly vulnerable to financial hardship.

Danny hine-Berry and his husband, Jonathan, who provided crucial support.

The Broader Consequences

The inadequacy of SSP can have far-reaching consequences. Workers might potentially be compelled to return to work prematurely, jeopardizing their long-term health and possibly increasing welfare spending due to prolonged illness or disability. as Hine-berry noted, “I think it should be down to the government to make sure that sick pay is at least in line with the minimum wage. If it’s left to the individual employers, there’s too much risk.”

Hine-Berry credits his sister and husband with providing financial support during his illness.

Takeaway

The current state of sick pay in the UK leaves millions vulnerable to financial hardship during illness.While recent legislative changes are a positive step, they fall far short of providing adequate support. A more substantial increase in SSP,bringing it in line with the minimum wage and comparable to standards in other developed nations,is crucial to ensuring the well-being and financial security of all UK workers. Advocate for fair sick pay policies by contacting your local MP and supporting organizations working to improve workers’ rights.

How does the low Statutory Sick Pay (SSP) rate in the UK compare to rates in other developed nations?

UK Sick Pay Crisis: Interview with Employment Law Expert

Archyde News speaks with Eleanor Vance, a leading employment law consultant at Brookside Legal, about the inadequacies of Statutory Sick pay (SSP) in the UK.

Q&A: Understanding the UK’s Sick Pay Shortcomings

Archyde News: Eleanor, thanks for joining us. The recent report on Statutory Sick Pay paints a grim picture. Can you summarize the main issues for our readers?

Eleanor Vance: Certainly. The core problem is that the current Statutory Sick pay rate – £116.75 per week – is simply insufficient for individuals to live on, especially for those with ongoing health issues or who are the sole earners in their household. Millions of workers are only entitled to this, instead of employer-provided sick pay, creating immense financial pressure when they are at their most vulnerable.

The Impact of Low Statutory Sick Pay on workers

Archyde News: We’ve heard stories of people forced to return to work prematurely or facing significant debt. What are the broader consequences of such low sick pay?

Eleanor Vance: Precisely. The consequences are multifaceted. Financially, it pushes families into poverty, forcing difficult choices between food, rent, and healthcare. From a public health perspective, people may return to work before they’re fully recovered, risking their long-term health and possibly spreading illness in the workplace. It increases strains on the NHS, potentially increasing welfare spending, and has a negative impact on productivity.

Government Efforts and Their Limitations

Archyde News: The government has recently extended sick pay eligibility to more workers. Is this a meaningful step forward, or just a band-aid solution?

Eleanor Vance: While the expansion of eligibility is a welcome step, it doesn’t address the basic problem: the inadequacy of the SSP rate itself. Expanding access is critically important, but if that access only leads to a meagre £116.75 per week, many people will still fall into financial hardship. Many workers still have to work out how to survive on barely £3 an hour when ill. It’s akin to widening a narrow doorway; more people can enter, but the room inside remains insufficient.

How Does the UK Compare Internationally?

Archyde News: The report suggests the UK lags behind other developed nations in terms of sick pay. Can you elaborate on that?

Eleanor Vance: Absolutely. Many European countries mandate employers to provide a much higher percentage of an employee’s usual salary during sick leave.Some, like Iceland and Norway, provide 100% coverage. The UK’s system is far less generous, shifting more of the financial burden onto the individual. This contrasts with countries that recognize sick leave as an investment into worker well-being and public health.

Advocating for Change: A Call to Action

Archyde News: What measures do you think are needed to address this issue effectively?

Eleanor Vance: Several things. Firstly, a significant increase in the SSP rate, bringing it closer to the national minimum wage or even a percentage of previous earnings. Secondly, stronger enforcement of existing employment rights to ensure employers aren’t exploiting loopholes. And thirdly, promoting greater awareness of employee rights regarding sick pay.Workers’ rights must be a priority. It requires a concerted effort from government,employers,and unions to create a healthier and more equitable system.

Final Thoughts: A Moment for Reflection

Archyde News: Eleanor, what’s one thing you’d want our readers to consider, given the realities of today’s sick pay in the UK?

Eleanor Vance: I would urge every reader to consider the ripple effect of inadequate sick pay.It’s not just about the individual struggling through an illness; it impacts their family, their community, and ultimately, our society as a whole. Perhaps the biggest injustice is that adequate sick pay can often be the difference between someone managing to recover and return to meaningful work, and someone sliding further into poverty. Is it right that in 2025, people are struggling to feed families and pay bills because they are ill?