Changes to sick pay for the lowest paid workers to come into effect

The Government has pledged to deliver on its promise to Make Work Pay with lower income workers no longer having to choose between their health or their jobs.

The changes will mean up to 1.3 million people on low wages who find themselves ill will either receive 80% of their average weekly earnings or the rate of Statutory Sick Pay which will be £118.75 per week from April – whichever is lowest. 

The changes are all part of its priority in the Plan for Change to grow the economy and put more money into working people’s pockets. This comes as the government delivers on the plan to boost workers’ rights and create a healthier, more productive workforce, which will be at the forefront of efforts to grow the economy – the priority of our Plan for Change.

The move means some of the lowest earners will be up to £100 better off per week, compared to the current system. This safety net will enable people to have the time off they need to recover, so they can get better and remain in work rather than risk quitting altogether.

Today’s changes will boost productivity in the workforce to help drive growth and usher in a decade of national renewal. Deputy Prime Minister, Angela Rayner MP, said: “What we put into our workforce, we get back and more. That’s why we’re making statutory sick pay a right for every worker for the first time so people can stay in work rather than risk dropping out.”

The government’s response to its statutory sick pay consultation has also been published this week, alongside other responses and amendments to the Employment Rights Bill, including on tackling fire and rehire and zero-hour contracts to tackle insecure work. 

While Statutory Sick Pay is devolved to Northern Ireland, a Legislative Consent Motion will be sought from the Northern Ireland Assembly to mirror these changes. 

The Lower Earnings Limit (currently £123 per week) is the amount of earnings that allow an employee to qualify for Statutory Sick Pay. The Employment Rights Bill was introduced in the House of Commons in October 2024. It is currently awaiting Report Stage.