DWP rule change will see UK workers up to £100 a week better off | Personal Finance | Finance

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More than one million workers across the UK will be up to £100 per week better off thanks to a rule change by the Department for Work and Pensions (DWP).

The DWP has announced changes to Statutory Sick Pay (SSP) for 1.3 million people on low wages as part of plans to improve living standards. UK workers that are paid less than £123 per week will get guaranteed sick pay equivalent to 80% of their average weekly salary, or the rate of SSP – whichever is lowest. The DWP says the change means that some of the country’s lowest earners will be up to £100 better off per week, compared to the current system.

Currently, workers can get £116.75 per week SSP if they are too ill to work and this is paid by employers for up to 28 weeks. From April, the rate of SSP is rising to £118.75 per week, giving those who are entitled to it an extra £2 weekly.

To qualify for SSP, you must be classed as an employee and have done some work for your employer, earn an average of at least £123 per week, and have been ill for more than three days in a row, including non-working days.

So if you earn less than £123 per week it means that you don’t get anything if you’re too ill to go to work. But the changes, which are expected to come in next year, will allow low-paid workers to have the time off that they need while still receiving 80% of their weekly salary, or the new SSP rate.

Officials say the policy will keep more people off benefits because they won’t need to quit their jobs while they recover.

Secretary of State for Work and Pensions Liz Kendall MP said: “For too long, sick workers have had to decide between staying at home and losing a day’s pay or soldiering on at their own risk just to make ends meet.

“No one should ever have to choose between their health and earning a living, which is why we are making this landmark change.

“The new rate is good for workers and fair on businesses as part of our plan to boost rights and Make Work Pay, while delivering our Plan for Change.”

The DWP said the new “fairer rate” strikes the right balance between giving workers who fall ill financial security and the cost to businesses, while retaining the incentives for people to return to work.