Labour Pledges Sick Pay Boost for 1.3 Million Low-Income Workers

More than a million of the UK’s lowest-paid workers will soon receive sick pay covering up to 80% of their weekly wages from the first day of illness, as part of a government initiative aimed at improving living standards.

Currently, UK statutory sick pay is among the lowest in the developed world, with workers earning under £123 per week receiving no entitlement at all. Those who do qualify must wait three days before receiving payments, which stand at £116.75 per week—set to rise to £118.75 in April.

A Financial Lifeline for Low Earners

Under the new policy, expected to take effect next year, workers below the £123 threshold will be eligible for sick pay at 80% of their earnings. The government estimates this will benefit 1.3 million low-income workers, allowing them to receive up to £100 more per week than under the current system. The move is also expected to reduce reliance on benefits, as fewer workers will be forced to quit jobs due to illness.

The reform is particularly aimed at those juggling multiple jobs, such as carers, cleaners, and parents balancing work with childcare. Initially, a lower rate of 60% had been considered, but the government opted for the higher percentage after consultations.

Government and Union Reactions

Liz Kendall, the secretary of state for work and pensions, emphasized the importance of the change, stating:

“For too long, sick workers have had to decide between staying at home and losing a day’s pay or soldiering on at their own risk just to make ends meet. No one should ever have to choose between their health and earning a living, which is why we are making this landmark change.”

However, workers’ rights groups, including the Trades Union Congress (TUC), believe the measure falls short. The TUC had advocated for sick pay at no less than 95% of weekly earnings.

Paul Nowak, the TUC’s secretary general, welcomed the increase but urged further improvements:

“This shouldn’t be the end of the story. We urge ministers to raise the replacement rate beyond 80% and conduct a wider review of statutory sick pay.”

Additional Employment Reforms

The sick pay reform is part of a broader package of changes in the upcoming employment rights bill, set to be introduced in Parliament this week. Other proposed adjustments include:

• Extending the probationary period for new employees to nine months, instead of the previously anticipated six months.
• Scrapping plans for a “right to switch off” outside of working hours, which would have protected employees from work-related contact during evenings and weekends.

These measures are expected to spark further debate over the balance between workers’ rights and business interests as the government seeks to implement its employment reform agenda.