Sick pay rule changes to benefit up to 9.6m UK workers, TUC says | Employment law
Up to 9.6 million UK workers will benefit from changes to sick pay rules, according to unions. They say the policy has broad support from voters despite objections from some businesses.
From Monday, around 8.4 million workers on statutory sick pay (the minimum amount employers must pay) will be paid from the first day they are sick, rather than the fourth day, according to an analysis by the Trades Union Congress (TUC).
Meanwhile, 1.2 million workers who were previously not entitled to statutory sick pay because they earned below the £125-a-week threshold will also be eligible. This move will disproportionately benefit women, who are overrepresented in low-wage jobs and part-time jobs, as well as workers with disabilities and younger and older workers.
The TUC said this would take pressure off low-income households who are potentially forced to choose between spreading and prolonging their illness or losing much-needed wages.
The changes are part of the first tranche of rights provided through the Employment Rights Act 2025, which also introduces new protections around sexual harassment, parental leave and trade union recognition.
The Labor government’s policy has proven popular across all political persuasions; 76% of respondents to the TUC survey said they support workers receiving sick pay from day one.
This is despite growing frustration among some employers who warn that new sick pay rules and the wider Employment Rights Act are putting pressure on already strained balance sheets.
Neil Carberry, chief executive of the Confederation of Recruitment and Employment, said businesses were already grappling with increases in the national minimum wage, payroll tax rises and now energy price rises caused by the war with Iran.
He said the crackdown had already forced bosses to cut staff and raise prices to make ends meet. “We are at a tipping point,” Carberry said. “The changes to statutory sick pay this week, if not quickly combined with better guidance for companies, will also lead to chaos as a small minority of workers will seek to defraud firms.”
