Statutory Sick Pay

Imran Hussain Excerpts

Tuesday 22nd April 2025 Westminster Hall

[Graham Stuart (in the Chair)]

I will call Imran Hussain to move the motion, and I will then call the Minister to respond. I remind other Members that they may make a speech only with prior permission from the Member in charge and the Minister. As is the convention for 30-minute debates, there will not be an opportunity for the Member in charge to wind up.

[Imran Hussain (Bradford East) (Lab)]

I beg to move,

That this House has considered the rate of Statutory Sick Pay.

It is a privilege to serve under your chairmanship, Mr Stuart.

Successive Governments have grappled with statutory sick pay, with report after report saying that we need fundamental, root-and-branch change to a system that is letting workers down every day. Frankly, successive Governments have failed to tackle this important issue head-on, with many actively avoiding or dodging it.

I am therefore glad that, within their first 100 days, this Labour Government delivered on our pledges and introduced a transformative, once-in-a-generation Employment Rights Bill to drag workers’ rights into the 21st century. Although the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Ellesmere Port and Bromborough (Justin Madders), who is largely responsible for the Bill, is not here today, I put on record my thanks to him. In a previous role, I had the pleasure of working alongside him in developing much of the policy outlined in the Bill, which will mean that workers’ rights in our country are fit for purpose.

The Bill makes welcome changes to statutory sick pay. In 2022, a Trades Union Congress survey found that 80% of those earning more than £50,000 a year receive their full pay when sick, compared with only a third of those earning under £15,000. Around half of all employees in the UK get their full pay, just under a third get statutory sick pay, and one in 10 gets nothing at all. Most low-paid employees—around 8 million—are in the middle group, reliant on statutory sick pay.

For those workers, the measures in the Employment Rights Bill are much welcome: removing the three-day waiting period so that workers are eligible for sick pay from day one; removing the lower earnings limit and extending sick pay eligibility to 1.3 million of the lowest-paid workers currently denied it due to the lower earnings limit of £123; and setting the 80% earnings replacement rate. However, as the TUC, the safe sick pay campaign and many others have said, we must not stop here. We must continue to be ambitious in strengthening workers’ rights.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for securing a debate on this critical issue. In my constituency and probably his, many small and medium-sized businesses are struggling—let us be honest—with the rise in national insurance contributions. Does he agree that, building on Labour’s Employment Rights Bill, the Minister and the Government might need to step in to ensure that such businesses, which are facing rising national insurance contributions, can still deliver statutory sick pay for their small group of employees?

[Imran Hussain]

Absolutely. I agree with the hon. Gentleman. He makes an important point that I will address more substantially later in my speech. He will also understand that having a healthier workforce and limiting presenteeism would massively increase the productivity of those small and medium-sized businesses in the long run. One of the huge issues we currently face is that people who are too sick to work are being forced to do so, because of the lack of support. That is not good for them or for businesses.

[Richard Burgon (Leeds East) (Lab)]

I congratulate my hon. Friend on securing this important debate and on running an important campaign to increase statutory sick pay so that it is a real sick pay on which people can rely. He talks in detail about the welcome advances on sick pay made in the Government’s recent Employment Rights Bill, but does he agree that a real concern about those proposals is that 300,000 of the poorest workers could lose out? Do the Government need to look at this again?

[Imran Hussain]

As ever, my hon. Friend makes an important and pertinent point. If he bears with me, I will address that later in my contribution. It is actually one of two points I want to address.

Hon. Members will know that I tabled two amendments to the Employment Rights Bill to strengthen its provisions on statutory sick pay. The first sought to bring statutory sick pay into line with the national living wage, so that no full-time worker is forced to live in poverty while unwell. The second amendment aimed to guarantee that no worker would be worse off under the new system, regardless of their earnings—my hon. Friend the Member for Leeds East (Richard Burgon) made reference to that, and I will come on to it.

First, I turn to the rate of statutory sick pay. For far too long, our statutory sick pay system has been one of inadequacy, and it has failed workers when they are at their most vulnerable. The pandemic laid bare just how broken the system is. Over a third of workers rely on statutory sick pay, and at a rate of £118.75 a week it is nothing more than a cruel joke—a poverty wage that leaves workers in financial insecurity, instead of being able to rest, recover and take the time they need to return to work fully fit.

The current rate makes up a mere 16.5% of the average weekly wage in the UK, far behind our European counterparts. To name some, workers in Iceland, Norway and Luxembourg are entitled to up to 100% of their pay during sick leave. However, we do not trail far behind only our international counterparts. When statutory sick pay was introduced in the 1980s, it was equivalent to 35% of the average weekly wage—double what workers can expect today. No other financial responsibility in a worker’s life is ever slashed by 83%. When someone falls ill, their bills, their council tax, their electricity bill, their mortgage payments and their grocery bills do not suddenly go down. That poses the question: why does statutory sick pay remain such a paltry sum, forcing people to choose between their health and their financial survival?

We know that the current rate pushes too many workers into the workplace when they are simply not well enough. It entrenches presenteeism, harming public health, reducing productivity and contributing to longer-term sickness and burnout, which makes workers drop out of the workforce entirely. The clear consensus is that the rate of statutory sick pay must increase, and it must increase in line with the national living wage.

That call is echoed by unions such as Unite and Unison, and by organisations such as the Child Poverty Action Group, Scope, Mind and Disability Rights UK. It is also supported by the majority of the British public. I urge the Minister not to ignore the swell of public opinion or the needs of workers across the UK, and to share the next steps that the Government are taking to fairly recompense workers during periods of illness.

The rate of statutory sick pay is not the only change that is urgently needed. Despite the Government’s best efforts, those on the lowest incomes, who do the hard and vital work in our economy, will be financially penalised for falling ill. These are the workers who are the backbone of our economy: cleaners, carers, drivers and retail workers. They are the very people who can least afford it. Low-paid workers—disproportionately women, young people and disabled workers—will still face the hardest burden.

The reality is that the new 80% earnings replacement rate extends sick pay to those who were previously excluded, which is very welcome, but it risks creating a system where some workers are worse off. I have worked with the Minister for many years, and I am sure that this was not the Government’s intention. But under the new rules, the reality remains that more than 300,000 workers earning between £123 and £146 a week could see their sick pay cut, which is something that my hon. Friend the Member for Leeds East referred to.

While previously a worker earning £123 a week was entitled to an earnings replacement of 95%, which is comparable to statutory maternity leave, for example, now a worker earning £124 for three days’ work a week will receive 80% from the first day of illness—£99.22 a week. Under the old rules they would have been entitled to the flat rate of £118.75 from the fourth day of illness. Under the new rules they will be worse off after five weeks. The fact that it takes five weeks to become worse off should not be seen as a mitigating factor, because this is not just about numbers.

The new rules will directly affect workers with chronic illnesses, those recovering from serious surgery and those undergoing cancer treatment. In short, it affects the people who can least afford to take a financial hit at the most vulnerable time of their life. These are workers who rely on every penny that they earn, and they must not be left behind under the new rules. That is the bare minimum that working people should expect.

I ask the Minister to outline how the Government will be supporting workers with chronic illnesses who fall sick, especially those who currently work and rely on disability benefits such as the personal independence payment to be able to dress, wash and get out and about in their daily lives. These workers have been left terrified by the recent announcement of changes to PIP eligibility criteria, and now they could also see statutory sick pay reduced, if they find themselves in that situation.

I urge the Government to think again about making the most vulnerable in our society pay for economic instability that is not of their making. It is not just an economic issue but a moral one. We can and must go further to support workers during their most vulnerable times.

[John Milne (Horsham) (LD)]

In my Horsham constituency office, I employ a member of staff who has ME. Fortunately, we can be very flexible with their working hours. However, under current law—where statutory sick pay is based on days worked not hours worked—an ME sufferer could easily miss out altogether on sick pay. Does the hon. Member agree that the Government should legislate to ensure that all employees are granted fair access to sick pay?

[Imran Hussain]

Absolutely—that is the crux. As I said before, I acknowledge that the Government have gone a considerable way. The Employment Rights Bill will make significant changes that allow millions of people to benefit from statutory sick pay when they would not have before. But the journey must not end there. The hon. Member is absolutely right that there are many people who are still missing out—there are 300,000 people who will significantly miss out, as I said.

This is not just an economic issue, and it should not be viewed as one. It is a moral issue. The Government have the power to ensure that every worker—whether in an office, a hospital, a factory or on the frontline—can take the time they need to recover without fear of financial ruin. They also have the power to ensure that no worker, especially those with long-term illnesses, receives less under the new rules than they would have received before. Let me be clear: we cannot allow this opportunity to pass without ensuring that every worker benefits from the changes we have introduced. This is our chance to build a fairer society that treats working people with the dignity and respect they deserve.

I hope the Minister, for whom I have much respect and regard, understands that I come at this from a place of support. He has a long track record of understanding these issues, and this is our opportunity. We must go further, because that is the only way we will address this matter, so I urge him to do so. Will he commit to reviewing SSP so that workers no longer have to rely on poverty pay when they are sick? Will he today commit to reviewing the impact of the new changes, specifically in relation to the 300,000 people who will be worse off under the new 80% replacement rate?

On the second question in particular, I urge the Minister to provide information to allow the House to see the impact on those 300,000 people. I do not believe for one minute that the Government intend to make them worse off; but, equally, I do not think we can just ignore it.

Finally, will the Minister outline exactly what steps he is taking to make sure that those with the most severe illnesses, and those who find themselves sick or in recovery for longer than five weeks, do not find themselves unfairly punished? The Minister knows that if we fail here, we will fail an entire generation of workers.

Welfare Reform

Imran Hussain Excerpts

Tuesday 18th March 2025 Commons Chamber

[Liz Kendall]

The hon. Lady may not know, but we have a fraud Bill going through Parliament right now, because we believe that £8 billion being wasted on fraud every single year is unacceptable. I am more than happy to write to her to set out the contents of that Bill; we can then have another discussion.

[Imran Hussain (Bradford East) (Lab)]

The reality remains that over the last few weeks, thousands of the most severely disabled people in my constituency and millions across the UK have watched in disbelief as politicians debate cuts to the support that enables their very survival, leaving many at breaking point. Does the Secretary of State understand the real fear and distress that that has caused? Will she today commit at the Dispatch Box to ensuring that not a single person who currently receives PIP will be unfairly punished or left struggling by these plans?

[Liz Kendall]

I do understand the worry and anxiety. I hope I have made it clear to the House today that I do not start from a position of being tough: I start precisely from a position of compassion for people who can work and are being denied opportunities and for severely disabled people who will never work. That is one reason why we are overhauling our safeguarding processes to ensure that those who can never work are never reassessed, to give them the confidence and dignity that they deserve.

Women’s Changed State Pension Age: Compensation

Imran Hussain Excerpts

Monday 17th March 2025 Westminster Hall

[Imran Hussain (Bradford East) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Edward. This very important debate greatly matters to all my constituents, particularly the 4,900 women in my constituency whom it impacts. As the hon. Member for South Cotswolds (Dr Savage) said in eloquently opening the debate, over 3.7 million women born in the 1950s have suffered grave injustices because of the changes to state pension age brought about in 1995, 2007 and 2011. Those changes were introduced without proper notice, leaving many in financial and emotional distress.

Those 1950s women worked hard all their lives; they paid their dues and contributed to the country and the economy, only for many of them to find that the retirement they had planned for was stolen from them without support or the basic courtesy of being informed in time. The Women Against State Pension Inequality Campaign has fought tirelessly for over a decade to shine a light on that injustice, and I pay tribute, along with other Members, to its determination. I assure those in my constituency that it continues to have my support and solidarity.

The previous Government kicked the can down the road and delayed committing to anything that could repair the damage done to WASPI women. Their delay has meant that at least 300,000 WASPI women have died waiting for the justice they deserved. I will say that the current Government must not, and cannot, go down the same path. While I note this Government’s acknowledgment of the ombudsman’s report that failings happened, communication was inadequate and women suffered, I also note their commitment to ensure that the maladministration and delay in sending out notifications never happens again, both of which are welcome.

Frankly, an apology alone is not enough. Apologies do not pay the rent, put food on the table or undo years of financial struggle. Let me be clear: this is about the principle of Government decision making and the responsibility to communicate properly, so that people can plan their futures with confidence. Crucially, as has been said by many hon. Members, it is also about recompense and redress. In this case, a 28-month delay in notifying affected women meant that they lost precious time to adjust their plans. Some lost tens of thousands of pounds, while others lost their homes. That is time and money that they will never get back.

I say to the Minister that we must look again at the ombudsman’s recommendations for fair remedy. Words are not enough; we need action. I know that a High Court challenge could be on the way, but that should not be necessary. The WASPI women should not have to take their own Government to court to be heard. The point has been made, which I want to echo, that there is a reason why we have a parliamentary ombudsman, why we have inquiries and why we should follow well-made recommendations. I believe the Government seriously need to look at this case.

We must now ask: what more can be done to ensure that 1950s women receive fair treatment? I urge the Minister to address that question and to set out the next steps that the Government are taking to work constructively with campaigners, MPs and affected women to find a fair resolution. Whether it is through targeted support, a compensation framework or other measures, we must ensure that WASPI women are not abandoned once again.

Income Tax (Charge)

Imran Hussain Excerpts

Monday 4th November 2024 Commons Chamber

[Imran Hussain (Bradford East) (Ind)]

I never cease to be amazed by Conservative MPs, in particular former Ministers. It is like the last 14 years never happened: they never crashed the economy, they never put 4 million children into poverty, they never devastated our communities. I hear Opposition Members talk about how the Budget destroys aspiration and ambition. What about the young people in our constituencies whose aspiration and ambition they destroyed for 14 years? What about the 4 million children they put into poverty? What about the working families who, for the last 14 years, they made use food banks? Did they not have aspiration and ambition? Did they wake up one day and decide to go and use food banks?

The shadow Chancellor, the right hon. Member for Central Devon (Mel Stride) has held very prominent positions in this House, but today he came out with pure fiction from some parallel universe. I ask him seriously to consider that. I have worked with him in the past, but I really do not think that he has done it justice. The Opposition should have had the decency to apologise for 14 years of failure, but we have not heard one acknowledgment of that. Do we think their constituents really buy that? Are the people out there suddenly going to forget the 14 years of devastation they brought to our communities?

I welcome the Budget. After 14 years, it provides real investment—over £25 billion—in our NHS, so that my constituents and the constituents of all Members will not have to wait weeks on end before they can see a GP. It provides billions for education, so that every child in my constituency will have the best start in education and the best start in life. I would of course like the Budget to go further to address poverty. I look forward to working with Ministers, because there is a journey still to travel. This is just the foundation.