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STATUTORY SICK PAY: Options for reform

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The statutory sick pay scheme has major problems that need to be addressed, many of which have been highlighted by the Covid-19 pandemic.

Almost all rich nations – except the USA – have systems of compulsory sickness payments. But the UK’s system is unusual: it is the least generous; and it pools very little risk between employers. This report puts forward a number of recommendations for reform.

Options include:

  • Pay a higher flat rate.
  • Create earnings-related sick pay.
  • End waiting days for statutory sick pay.
  • Paying statutory sick pay to people on low incomes.
  • Improve sickness payments for the self-employed and part-time workers.

This report was commissioned by the TUC and first published at www.tuc.org.uk

 

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Andrew Harrop

Andrew Harrop is general secretary of the Fabian Society.

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