DWP rule change could see all employees paid sooner

The Department for Work and Pensions (DWP) has announced a significant change that could see employees paid more quickly in certain situations. In an alert issued on Tuesday, the DWP said it is changing the rules on Statutory Sick Pay (SSP), with both the previous waiting time and the Lower Earnings Limit axed.

Consequently, all employees will be eligible for SSP from the start of their sickness absence, regardless of their income level. A new consultation has been launched to gather public opinions on the proposed pay rate for those earning less than the flat rate of SSP.

This revision is expected to benefit around 1.3 million employees who are currently ineligible for SSP. Work and Pensions Secretary Liz Kendall stated: "Millions of employees across the UK who can't immediately get sick pay if they are too unwell to work deserve better."

She added: "People should not have to choose between earning a living at work or getting better at home - the changes we want to see will allow employees to do both and businesses to get on. We are now asking for your views on the rate of sick pay for low earners as we fix our broken labour market and the poor pay and working conditions that have been holding our economy back."

For an employee to be eligible to receive SSP they must earn at least the Lower Earnings Limit, currently £123 per week. This, DWP said, has a "disproportionate impact on those working in low paid, part-time or multiple jobs". The government department added that "women and young people will particularly benefit from removing the LEL".

Further information on Gov.uk adds: "However ... it would be inappropriate and unfair to pay them the flat rate of SSP as they would then receive more in sick pay than through their normal earnings. The fairest way to achieve the right balance is to ensure employees are paid a certain percentage of earnings up to the flat weekly rate."