The statutory sick pay system is “broken” and needs urgent reform, the professional body for human resources has warned.
The Chartered Institute of Personnel and Development called on the government to act as concern grows of a potential fourth wave of the pandemic because of the Omicron variant.
The institute wants the statutory level of sick pay to be at least equivalent to the national minimum wage, so for someone aged 23 or over working seven hours a day, their pro-rata daily statutory sick pay rate would be £62.37. The rate at present is £96.35 per week for up to 28 weeks, which is lower than most other European countries.
Nearly two thirds of employers and over half of small and medium-sized businesses — which would find it harder than larger employers to cover increased sick pay costs — agree that the rate is too low and should be raised, the institute’s report suggests.
More than five million people in the UK do not qualify for statutory sick pay, according to the report, which calls for the widening of the eligibility criteria by removing the lower earnings limit where an employee must have average weekly earnings of at least £120 a week to qualify. It is also urging the government to allow phased returns to work, remove the three qualifying days for payment of sick pay, and look at opportunities to improve income protection for the self-employed.
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The institute described the present system as “financially inadequate” during the pandemic, suggesting that many people continued to work when ill or needing to self-isolate.
Rachel Suff, senior employment relations adviser at the professional body, said: “The UK’s system has been broken for a long time and the pandemic has only highlighted its failure.
“Statutory sick pay deficiencies can have a devastating impact on people’s health and wellbeing, including financial distress.”