DWP confirms statutory sick pay changes as 1.3 million more workers gain coverage

The Department for Work and Pensions (DWP) is introducing statutory sick pay rule changes affecting employees who call in sick, with minister Pat McFadden confirming that up to 1.3 million more workers will be covered and can now access sick pay from their first day of illness.

The Department for Work and Pensions is implementing a rule change that will affect workers who phone in sick. Pat McFadden, the DWP minister, has spoken to the House of Commons about the modifications to sick pay arrangements.

Labour MP Yuan Yang this week asked Mr McFadden “what assessment has he made of the adequacy of rates of statutory sick pay?” prompting a response from the DWP minister, reports Yorkshire Live.

Mr McFadden, who leads the welfare department, said: “For the first time ever, we have removed the lower earnings limit for statutory sick pay, as well as the waiting period so that people can access sick pay as soon as they need it.

“These changes will mean that up to 1.3 million more people will be covered, helping the low paid and those who work for more than one employer in particular.”

Yang said: “I am indeed very proud of this Labour Government’s historic Employment Rights Act 2025, which, from this month, means that workers will get statutory sick pay from the first day they are ill, rather than having to wait till the fourth. Too many people in Reading – even those working in health and care settings – are working through their illnesses; this measure will protect them, their clients and patients and improve the productivity of their workplaces.

“While the ERA is an important step forward, does the Secretary of State accept that the current flat rate of statutory sick pay 0 at four fifths of average earnings – remains a barrier to those on low incomes, and thus remains a barrier to tackling illness in the workplace?”

Mr McFadden continued: “I believe that removing the three-day limit and giving access to statutory sick pay from day one, as well as making it available to those who work for multiple employers, should decrease the pressure on workers to have to work through illness.”

Matthew Oakley, Founder and Director of WPI Economics, remarked: “Sickness absence costs the economy – simple as that – and it impacts affected workers severely in terms of lost earnings.

“Improving sick pay would enable people to take the time off they need to recover and lower the number of people taking extended sick leave, stemming the flow of unwell workers on to out-of-work benefits and boosting productivity.

“As the Government looks for fresh ideas to give the UK a competitive edge, a wider overhaul of sick pay and better incentives for employers to invest in occupational health should be front and centre.”