A series of policy shifts around Statutory Sick Pay have fundamentally altered the financial landscape for UK employers, with small businesses bearing the brunt of changes that ended pandemic-era support while expanding the bureaucratic framework around workplace illness.
The most significant change for employers came with the quiet termination of the Statutory Sick Pay Rebate Scheme on 17th March 2022. This pandemic-era lifeline, which allowed businesses with fewer than 250 employees to reclaim up to two weeks of SSP for COVID-19 related absences, has left small and medium-sized enterprises shouldering the full cost of employee sickness without government backing. For many SMEs operating on tight margins, this represents a return to pre-pandemic financial exposure at a time when economic pressures remain acute.
In parallel, the Government has broadened the professional scope for issuing fit notes—a change that, whilst administratively sensible, adds another layer of complexity to workplace sickness management. Since 1st July 2022, registered nurses, occupational therapists, pharmacists, and physiotherapists can issue Statements of Fitness for Work alongside traditional GP consultations. The policy aims to reduce pressure on overstretched general practice whilst streamlining the process for employees, though employers must now navigate documentation from a wider range of healthcare professionals.
For employees, the fundamental eligibility criteria remain unchanged: worker status, previous employment with the company, earnings of at least £123 per week (the Lower Earnings Limit), and illness lasting four consecutive days including weekends. The notification requirements—either by employer deadline or within seven days—continue to govern access to support, meaning procedural compliance remains crucial for securing entitlement.
April's expected increase to the weekly SSP rate reflects the Government's annual adjustment mechanism, designed to maintain pace with inflation. Whilst the precise figure awaits confirmation, employers must prepare payroll systems for the update—a routine administrative requirement that nonetheless carries legal obligations for accurate payment.
These cumulative changes highlight a policy direction that places greater financial responsibility on employers whilst attempting to streamline administrative processes. The practical effect leaves businesses—particularly smaller ones—managing increased costs without the safety net that supported them through the pandemic's peak, even as the bureaucratic framework around workplace illness continues to evolve.
Source: Yorkshire Live