Sick Leave: Self-employed
The question
To ask the Secretary of State for Work and Pensions, whether his Department has undertaken an assessment of the potential merits of creating a sick pay scheme for self-employed people.
Answered by Sir Stephen Timms
Statutory Sick Pay (SSP) is paid for by employers and there is no mechanism to include the self-employed in SSP.
It is important to highlight that many self-employed people already choose to take out some form of insurance or income protection to financially support them during periods of sickness absence.
The Government does have a wider safety net to ensure self-employed people are supported through the welfare system. Where an individual’s income is reduced while off work sick and they require further financial support, they may be able to claim Universal Credit and/or new style Employment and Support Allowance (ESA), depending on their personal circumstances.
New Style ESA is an income-replacement benefit for people who are unable to work because of a health condition or disability and is not an in-work benefit. The aim of ESA is to provide support to individuals who are unable to work due to their disability or health condition, and to help them move towards employment if and when they are able to do so. Eligibility is dependent on satisfying the basic conditions of entitlement and contribution conditions.
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