Removing the worry of getting sick: a call for safe and fair sick pay

5th September, 2024

By Jenny Herrera, CEO of the Good Business Charter

The Centre for Progressive Change is leading the way on its Safe Sick Pay campaign, a crucial initiative in a country where the Statutory Sick Pay system is one of the least generous in Europe. This is an area where the leadership shown by responsible employers is not just commendable—it’s absolutely vital.

The harsh reality of statutory sick pay

Government sick pay in the UK is so low (£116.75 a week, kicking in from day four) that it works out as less than £3 an hour for a full-time worker. It is nowhere near enough to be able to pay the bills. That means that when people are off sick, unable to work, they are worrying about money. More than half of people on Statutory Sick Pay are living in poverty.

And there is another problem – if you earn less than £123 per week with your employer, you fall below the ‘lower earnings limit’, and are not entitled to Statutory Sick Pay. TUC analysis in 2024 shows that 1.3 million people do not earn enough to qualify for Statutory Sick Pay – and women are twice as likely as men to miss out for this reason. 6.5% of women do not earn enough to qualify for statutory sick pay, compared to 2.8% of men. And men are far more likely than women to receive full pay when they are ill (62% compared to 52%).

Illness and poverty: a vicious cycle 

I also lead a charity that steps into the gap for people in UK poverty – and becoming unwell is a key catalyst for a ‘just-about manageable’ situation turning into a full-blown crisis.  Perhaps the illness lasts 2 weeks – but that is enough, with 3 days of no pay and then the remainder at such a low rate – to start a spiral of being unable to pay rent and then potential eviction or getting into debt with utility bills or similar in order to keep their home.

No-one chooses or wants to be ill.  And when you are ill, the most important thing to do is to rest and give your body time to recover.  You simply cannot do that when financial worries start mounting up which leaves many on low pay in our nation unable to afford to be ill!

Disparities in sick pay are a factor in the income inequality in our nation. In 2022, households in the bottom 20% of the population had on average a disposable income of £13,218, whilst the top 20% had £83,687.  I would suggest many of those top 20% have benefits through work for free private healthcare, and if not, have the disposable income to pay for it.  Meanwhile, the cleaners who come to their office or perhaps those serving food in the canteen live in fear of being unwell – knowing their disposable income is too low to afford any time on SSP if they even reach the lower earnings limit to receive it!

Impact on low-paid workers 

Furthermore, some of the lowest paid jobs are also those most likely to lead to sickness because of the sheer number of people they are dealing with in settings such as hospitality and healthcare.  The reality is we live in a country where some people are exposed to potential germs as part of their job but find themselves with zero protection if they were to get unwell from those germs.  This should sit uncomfortably with us – we were acutely aware of it during the pandemic but our key workers soon faded out of the limelight again, left to suffer alone.

The stress of needing to get back into work as soon as possible increases the risk people come back still unwell, spread that illness which can impact on productivity more widely and/or they soon become unwell again in a desperate cycle.  Are we really surprised the number of people off on long-term sick is so high?

Learning from good practices 

We can embrace a better way.  We can learn from good businesses.  We can listen better to our workforce to see what would be helpful for them.  We can adequately care for people in a way that keeps them from crisis.

Employee wellbeing does not stand in an island – it is linked to decent pay, secure hours, a genuine voice for employees, and a place where everyone feels included.  Indeed, the statistics quoted above show a concerning disparity between men and women which is an area of EDI that should have long been resolved – but remains an issue.

Get these things right and there is a good chance there will be less sickness in the first place – but illnesses exist and we will all likely suffer one thing or another at some time in our lives.  We urgently need to up our game on how we care for those in their hour of need – whether it be a bad head cold, a heart attack, depression or surgery after a car accident.  Let’s commit together to not add financial stress to their ailments.

Good Business Charter

At the Good Business Charter, we do not currently ask a specific question about sick pay in our accreditation but we do recommend as best practice generous sick pay, which has no waiting days and that matches or exceeds the real living wage.   We want our accredited organisations to be truly leading the way in how they approach sick pay.

We may not have a specific component on sick pay but I believe adherence to each of our 5 colleague components will help create a more supportive environment to help those who need support when unwell.  Firstly, those most impacted by the poor rates of sick pay are the people on low pay.  GBC accredited organisations commit to paying at least the real living wage to their employees which enables them to live to minimum income standards as established by Joseph Rowntree Foundation.

The challenges of low pay are exacerbated if they are also experiencing uncertain hours on top of that with all the insecurity zero and minimal hours contracts bring.  It feels like those making decisions on sick pay – Heads of HR/People and more senior – have too often forgotten the challenges of making ends meet on low wages.  That means becoming unwell can be catastrophic.  What to a business may just seem like a budget line is so important to individuals just about managing financially on low wages and petrified of becoming ill.

An example of good practice on sick pay is Leek Building Society who have a supportive occupational sick pay scheme, with full pay for six months for individuals with significant health conditions.

To find out more about the Centre for Progressive Policy’s Safe Sick campaign please see here.