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Labour Introduces 80% Sick Pay Guarantee for Low-Paid Workers

New reforms will extend statutory sick pay to 1.3 million UK workers earning below £123 per week, starting from the first day of illness.

  • The reforms will guarantee sick pay of 80% of weekly wages or the standard statutory rate of £118.75, whichever is lower, for low-paid workers.
  • Workers earning below £123 per week, previously excluded, will now be eligible for statutory sick pay under the new system.
  • Sick pay will begin from the first day of illness, removing the current three-day waiting period for eligibility.
  • The changes are part of Labour's Employment Rights Bill, aimed at improving living standards and reducing reliance on welfare benefits.
  • Business groups have expressed concerns about potential challenges in managing short-notice absences, while unions are calling for further increases to the sick pay rate.
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