A sick pay shake-up could pump up more than £4billion into the economy, a report says today.
Researchers revealed some workers on Statutory Sick Pay receive as little as £1.10 an hour in the first week and less than £3 an hour thereafter. A study by WPI Economics, commissioned by the Centre for Progressive Change think tank, claims reforming the system could cut sickness absence and boost productivity.
It believes an overhaul, including lifting SSP to the National Living Wage rate of £10.42 an hour for workers aged 23 and over, could be worth up to £4.1bn to the economy by slashing overall sickness absence by limiting the spread of infections and reducing long periods of illness. The report, which will be published today in Parliament, found direct costs of hiking sick pay would be outweighed by the benefits.
