Statutory Sick Pay
The question
To ask the Secretary of State for Work and Pensions, what steps she is taking to (a) review and (b) consult on the rate of statutory sick pay in the Spring 2025 Spending Review.
Answered by Sir Stephen Timms
Statutory Sick Pay (SSP) is paid entirely by employers and so the rate is not subject to departmental spending decisions that will be made at the Spring 2025 Spending Review.
The rate of SSP is reviewed as part of the annual uprating process. Subject to Parliamentary approval the rate of SSP will increase in line with the September 2024 CPI rate of 1.7% to £118.75 per week from April 2025.
Through the Employment Rights Bill, introduced on 10th October 2024, the Government has removed the SSP waiting period and extended eligibility to those earning below the Lower Earnings Limit. The changes introduced within the Bill will mean that for some lower earners, including those earning below the Lower Earnings Limit, their rate of SSP will be calculated as a percentage of their earnings instead of the flat weekly rate.
The Government is currently consulting on what this percentage should be, so that it provides a fair earnings replacement when these employees need to take time off work. This consultation will close on 4th December 2024.
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