Statutory Sick Pay: Small Businesses
The question
To ask the Secretary of State for Work and Pensions, what assessment the Department has made of the potential merits of introducing a Statutory Sick Pay rebate or reimbursement scheme for small and medium-sized employers following the changes introduced on 6 April 2026.
Answered by Dame Diana Johnson
Strengthening Statutory Sick Pay (SSP) is part of the Government’s Plan to Make Work Pay ensuring the safety net of sick pay is available to those who need it most. Widening eligibility to the up to 1.3mn employees who were previously not entitled to SSP, and removing the waiting period so that SSP is paid from the first day of work missed due to sickness, were introduced to help ensure that no one should have to worry about whether they can take time off when they are ill.
The government conducted a Regulatory Impact Assessment on the changes to strengthen Statutory Sick Pay in the Employment Rights Act, which was published in October 2024 and can be found here: Impact assessment: Improve access Statutory Sick Pay removing Lower Earnings Limit and waiting period.
Previous SSP rebate schemes that were available to employers, such as the Percentage Threshold Scheme were seen as complex, expensive to administer, underused by small businesses and did not encourage employers to support their employees during sickness absence.
Verbatim has judged this answer against the question that was actually asked — answered, partly answered, or evaded. Sign in to see the verdict →