[IER] Sick pay system is “broken and in desperate need of reform"

Fri Apr 5 15:54:25 BST 2024

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Sick pay system is “broken and in desperate need of reform”

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The Covid-19 pandemic showed that our sick pay system is in desperate need of reform.

Statutory sick pay is currently just £109.40 per week – equivalent to just 17% of average earnings (uprated to £116.75 in line with inflation as of tomorrow, 6 April 2024). And there is a three-day waiting period before those eligible start getting statutory sick pay. This brings the amount for the first week for someone working a typical five-day week to £44, which is just 7% of average weekly earnings.

The TUC have said they believe that the three-day waiting period should be removed (as increasing statutory sick pay with waiting days still in place substantially reduces workers’ entitlements during their first week of sickness), remove the lower earnings limit and raise the rate of sick pay.

 <https://www.ier.org.uk/news/sick-pay-system-is-broken-and-in-desperate-need-of-reform-says-tuc/> More details 

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Minimum wage and National Living Wage increases

On the 1st of April, the National Living Wage increased to £11.44 an hour, up from £10.42 – a rise of £1.02 an hour. The National Minimum Wage for 18-20 year olds is now £8.60, up from £7.49. 

 <https://www.ier.org.uk/news/minimum-wage-and-national-living-wage-increases-on-april-1st/> More details 

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'Time for a new deal': UK's new minimum wage still not enough to cover 'a decent standard of life'

Minimum wage, known as the national living wage, is up this month. But campaigners warn it's more than £1,000 short of the money people need to afford the cost of living. Isabella McRae in the Big Issue.  

 <https://www.bigissue.com/news/employment/uk-minimum-wage-rise-april-cost-living/> Read here 

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Office workers at risk of being "cheated” out of minimum wage, TUC warns

Salaried workers could be paid illegally low wages as minimum wage goes up.  

 <https://www.tuc.org.uk/news/office-workers-risk-being-cheated-out-minimum-wage-new-rate-comes-force-tuc-warns> More details 

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The doomsters were wrong about the minimum wage. They’re wrong about Labour’s new deal for workers, too

This is a policy that could make a radical difference – as long as it’s not watered down like the green prosperity plan - by Larry Elliott in the Guardian

 <https://www.theguardian.com/commentisfree/2024/apr/04/the-doomsters-were-wrong-about-the-minimum-wage-theyre-wrong-about-labours-new-deal-for-workers-too> Read here 

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Justin Madders on the New Deal for Working People: ‘Better pay will end the self-defeating low wage’

The MP for Ellesmere Port and Shadow Minister for Business, Employment Rights and Levelling up writes in the Chester Standard 

 <https://www.ier.org.uk/news/justin-madders-on-the-new-deal-for-working-people-better-pay-will-end-the-self-defeating-low-wage/> More details 

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TUC calls for bosses to be fined if they fail to act on closing gender pay gap

The deadline for companies with more than 250 workers to report their gender pay gap data passed yesterday. Via the Morning Star. 

 <https://morningstaronline.co.uk/article/tuc-calls-bosses-be-fined-if-they-fail-act-closing-gender-pay-gap> More details 

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