Mind briefing for MPs: Reforming Statutory Sick Pay
October 2024
Statutory Sick Pay (SSP) is inadequate and does not provide a safety net for people when they are unwell. For those of us with mental health problems, relying on SSP can plunge us into poverty and push us out of work. It leaves us with an impossible choice between taking care of our mental health, or being able to pay our bills or buy food.
If you would like to arrange a meeting to further discuss this briefing, please contact us on [email protected]
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What are the issues with SSP?
The UK has one of the least generous sick pay schemes in the OECD in terms of rates and length. It forces people to remain in work while they are unwell, which risks them becoming more unwell and eventually falling out of work.
Because SSP is inadequate, people who rely on it often carry on going into work when they are unwell. This can risk them becoming more unwell to the point where they fall out of employment altogether.
300,000 people with mental health problems drop out of work every year, in part due to issues with SSP.
We need a sick pay system that provides real security.
We should strive for a more compassionate SSP system. One that gives people the time they need to get better and support them to return to work when they are ready.
The financial trouble caused by Statutory Sick Pay wasn’t just a drop in pay. It was the difference between being evicted or not, between eating or not.
Jenny
Mind's recommendations for SSP
We welcome the government’s commitments to strengthen SSP by removing the lower earning limit and removing the waiting period. But the government must go further to ensure people with mental health problems have a secure safety net when they need time off work.
- Statutory Sick Pay should be flexible and allow people to return to work and a voluntary phased return and receive wages and SSP on a pro-rata basis.
- Statutory Sick Pay should be extended from 28 weeks to 52 weeks. People with fluctuating conditions like mental health can use their full allowance of sick pay, meaning they either have to use their annual leave allowance, take unpaid leave, or continue working and risk their health worsening to ensure they still receive money.
- The rate of Statutory Sick Pay should be raised in line with workers’ wages up to the National Living Wage.
Experiences of SSP
In 2020, Mind surveyed 1,744 people with mental health problems about their experience of SSP. We found:
- 2 in 3 respondents told us that the reduction in income they experienced due to receiving SSP caused them financial problems and for some this meant going into debt.
- More than 1 in 4 specifically mentioned relying on SSP had affected their ability to pay their bills or buy their food.
- 3 in 5 people told us that the reduction in income caused by SSP had a negative effect on their mental health.
- 1 in 4 stated that this slowed down their recovery.
What would reforms mean?
Reforming SSP will be beneficial to the economy, businesses, and people with mental health problems.
- Presenteeism – going to work when unwell – is costing UK employers £24 billion annually, which is more than the cost of absenteeism (Deloitte, 2023). It reduces productivity and business competitiveness, as well as aggravating a person’s illness.
The IPPR suggests that if a more generous sick pay was introduced and people did take more sick days, there would still be a net positive for businesses as presenteeism costs so much. - Introducing a flexible SSP model that allows for partial SSP payments alongside wages would help people to gradually return to work after a period of sickness or allow people to reduce their hours when they need to without being signed off completely.
- Not only is this beneficial for the employer as employees are able to return to work sooner part-time, but it also keeps the employee connected to their workplace and reduces the likelihood that they will fall out of employment altogether.
- Extending the length of SSP being paid from 28 weeks to 52 weeks will enable more people to stay in employment, reducing re-hiring costs for businesses and preventing people from falling out of employment and needing support from the benefits system.
- Increasing the rate of SSP will prevent people going into financial hardship when they are unwell and give them space to take time and recover without the stress of going into debt.
What you can do as an MP
You can work with Mind to influence the Employment Rights Bill as it moves through Parliament. Please use [email protected] to get in touch with us.
About Mind
We're Mind, the mental health charity for England and Wales. We’re here to fight for mental health. For support, for respect, for you. We change minds across England and Wales by making mental health an everyday priority. We support minds – offering help, information, advice and local services. And we connect minds. Bringing together people who care about mental health to make a difference.
We work with MPs from across the political spectrum to ensure that everyone experiencing a mental health problem gets support and respect. If you’d like to discuss how you can support Mind’s work, please do not hesitate to get in touch with our public affairs team by emailing [email protected]