Sick pay reforms might enhance UK economic system by £4.1bn

eforms to sick pay might minimize absence ranges and supply a £4.1 billion enhance to the UK economic system, in keeping with new analysis.

It comes because the variety of individuals off work on account of long-term sickness stays round report excessive ranges.

New evaluation from WPI Economics discovered that larger charges of employer sick pay present longer-term advantages which greater than offset the elevated value to corporations.

It claimed that the economic system would obtain a £4.1 billion enhance if each employee on Statutory Sick Pay obtained elevated sick pay from their employer from day one, which it claimed would additionally cut back financial exercise among the many UK workforce.

Even with a conservative strategy to estimating the advantages of coverage change, we discovered that these considerably outweigh the short-term prices

Britons can presently obtain £109.40 per week in statutory sick pay for as much as 28 weeks.

The report claimed that one in three employees on sick pay are presently residing in poverty.

Matthew Oakley, director of WPI Economics, stated: “The UK’s sick pay system is just not working.

“This evidence shows that reforms would be a win for workers, businesses and Government alike.

“Even with a conservative approach to estimating the benefits of policy change, we found that these significantly outweigh the short-term costs.”

Last month, the Office for National Statistics reported {that a} report 2.6 million Britons have been economically inactive on account of long-term illness over the three months to April.

Workers with entry to paid sick depart have been discovered to be 28% much less prone to be injured or in poor health than these with out and cut back prices for the NHS, the report additionally stated.

Sir Robert Buckland, MP for South Swindon, stated: “Improving workers’ sick pay is a win-win policy for Rishi Sunak, supporting hard-working people and boosting our post-pandemic economic recovery.

“The Government should act now on this welcome evidence in order to safeguard the future health and prosperity of our nation.”

Unison basic secretary Christina McAnea stated: “The pandemic underlined how sick pay needs a total overhaul.

“Those earning the least often don’t qualify, or they face such a huge drop in wages they could risk working when they shouldn’t.”

A Department for Work and Pensions spokesperson stated: “We know for many people there are significant benefits to being in work, including for their wellbeing.

“We’re investing £3.5 billion to help millions, including those with long-term illness, to start, stay and succeed in work as part of our drive to boost the economy and bring down inflation.

“Our plan is working with a fall in inactivity of nearly 300,000 people but for those who can’t return to work yet, employers can choose to pay more occupation sick pay for longer, while Universal Credit provides a strong financial safety net for those needing extra support.”

Content Source: www.commonplace.co.uk

Sick pay reforms might enhance UK economic system by £4.1bn – analysis

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