More than 1 million of the lowest-paid UK workers will now be guaranteed sick pay worth up to 80% of their weekly salary starting from the first day of sickness, under changes aimed at improving their living standards. The UK currently has one of the lowest rates of statutory sick pay in the developed world, with those earning less than £123 a week not eligible for any pay, according to the Resolution Foundation. The current rate is set at just £116.75 a week, rising to £118.75 – or £3 an hour – for full-time workers from April, but this only applies after three days of sickness.

Under the proposed changes expected to be introduced next year, workers earning below the £123 limit will be entitled to sick pay of 80% of their wages. The government claims that this will mean 1.3 million of the UK’s lowest earners will be up to £100 a week better off compared to the current system, helping to keep more people from relying on benefits as they won’t have to quit their jobs while ill.

The government had previously promised to revisit sick pay for the lowest earners, with employees working multiple jobs such as cleaners, carers, or parents juggling childcare expected to benefit the most. Initial considerations suggested a rate as low as 60% of weekly pay, but the government opted for the higher rate instead.

Liz Kendall, the secretary of state for work and pensions, stated, “For far too long, sick workers have faced the difficult choice between staying at home and losing a day’s pay or risking their health just to make ends meet. No one should ever have to choose between their health and earning a living, which is why we are making this historic change. The new rate is beneficial for workers and fair for businesses, as part of our plan to boost rights and ensure work pays, while delivering our vision for the future.”

However, there may be disappointment among workers’ rights groups, as the TUC had previously advocated for a sick pay rate of no less than 95% of weekly pay for those under the £123 limit.

Paul Nowak, the secretary general of the TUC, welcomed the upgrade to sick pay but emphasized that this shouldn’t be the end of the process. He urged future ministers to raise the replacement rate for the lowest earners beyond 80% and to conduct a broader review of the statutory sick pay rate.

The changes to sick pay will be introduced as part of a series of updates to the employment rights bill to be presented in parliament this week. Other expected changes to the bill include setting a probationary period for new workers at nine months instead of the previously anticipated six months, as well as the abandonment of the proposed “right to switch off” at evenings and weekends.

Source: https://www.theguardian.com/money/2025/mar/03/labour-unveils-sick-pay-guarantee-for-13m-lowest-paid-workers