Statutory Sick Pay and Protection for Workers

I beg to move,

That this House has considered the matter of Statutory Sick Pay and protection available for all workers.

This is an international crisis, where countries need to learn from each other about what is working and what additional steps need to be taken. We also need to come together as a country to support each other as the severity of the crisis is becoming clearer. A Public Health England document estimates that the coronavirus epidemic in the UK will last until this time next year and could lead to almost 8 million people being hospitalised. The impact will be felt not just by those who become ill or have to self-isolate; this public health crisis has exposed the fault lines in an economy in which insecure, low-paid work is so prevalent.

In the Budget last week, and again yesterday, the Chancellor announced measures to support business, but there was a glaring omission when it came to workers on low income and those who are unable to work. PHE warns:

“It is estimated that at least 10% of people in the UK will have a cough at any one time during the months of peak Covid-19 activity.”

The revised health advice is that anyone with a cough should self-isolate for at least seven days, and for 14 days if they live with other people. It is right that people should not go on working when they are not well, but the Government’s measures so far still leave many people facing a cruel choice between their health and financial hardship, and it is a choice that has an impact on the health of the people with whom they come into contact.

In response to the questions from the Leader of the Opposition, the Prime Minister said that he would bring forward a package of measures relating to statutory sick pay. We really do need the details on that as a matter of urgency.

In order to claim statutory sick pay, workers need to prove that they are earning a minimum of £118 per week. So does my hon. Friend agree that rather than just regurgitating vacuous soundbites such as “whatever it takes”, the Government need to bring the statutory sick pay levels up from the current paltry £94.25 a week, which is not enough to even feed one’s family, to European levels and to extend it to all workers?

My hon. Friend makes a couple of important points about the levels of pay and the people who are able to access it, and I will be coming on to deal with those things in my speech.

Some 7 million people are not eligible for statutory sick pay: just under 2 million workers on low income do not qualify because they earn less than the £118 on average; and 5 million self-employed people do not qualify. Those on low pay are some of those who will be hit hardest by the crisis. Many of them work in retail, hospitality and leisure, and we are also hearing of people being laid off in these sectors. Others will be concerned that their jobs may be at risk, and these anxieties could also make them more likely to carry on working, even if they are unwell. Nearly 1 million people are on zero-hours contracts. Analysis by the TUC found that the earnings of about a third of them do not meet the threshold for SSP, compared with a figure of 6% for permanent employees, and women figure highly in the number of people on zero-hours contracts. Overall, about 70% of workers who would benefit from the removal of the threshold are women. A Government consultation published last year highlighted that workers who do not earn enough to qualify for SSP may be “working when unwell”. It said that the Government believed that there was a case to extend eligibility for SSP to people earning less than the threshold. So will they now extend SSP to all workers, including those on low pay?

Along with the just under 2 million people whose earnings are too low to qualify, others on low income in the gig economy are not eligible because they are classified as self-employed. They include careworkers, cleaners and delivery drivers, the very people on whom we will be depending to an even greater degree than usual in the coming weeks and months as people have to self-isolate in greater numbers. My hon. Friend the Member for Dulwich and West Norwood (Helen Hayes) has rightly highlighted, in a letter to the Government signed by 100 colleagues, that although NHS England has issued guidance advising trusts to give full sick pay to staff who have to self-isolate because of the disease, careworkers on zero-hours contracts will not be protected. They make up a quarter of the social care workforce. Will the Government ensure that they also qualify for full sick pay? In the case of delivery drivers, the GMB has worked with Hermes to agree on a fund to protect the income of drivers who fall sick or who have to self-isolate, but there are other examples of companies offering derisory payments or even requiring drivers to continue to meet the costs of renting vans even while they receive sick pay. We should not need to emphasise how important it is that people in occupations where they are going from one house to another should not go on working when unwell. We depend on people such as carers and drivers, and the Government have a responsibility to protect them if they are unable to work because of the outbreak.

Is the hon. Member aware that research undertaken by the Institute for the Future of Work absolutely backs up everything she is saying about putting the statutory floor in place so that people can economically contribute when it is right for them to do so? There is much more resilience in the general population and they have more ability to work when they are fit to do so when such a measure is in place.

The hon. Lady makes a really excellent point, and I thank her for it. Many workers on low pay are unlikely to have savings to fall back on either. In a recent YouGov survey, 48% of workers said that they would not be able to cover their rent or mortgage and other living expenses if they had to take two weeks off work at the current statutory sick pay rates. The European Committee of Social Rights found in January 2018 that statutory sick pay and social protections for the unemployed, sick and self-employed people in the UK were “manifestly inadequate”.

A worker in the UK on the national minimum wage who has to self-isolate will receive less than a third of what they would in Germany and less than half of what they would in Sweden or the Netherlands. The level of statutory sick pay is also set lower than the national living wage, which the Government said in the Budget that they want to increase. Will the Government therefore raise statutory sick pay to at least the level of the real living wage so that people are not pushed into poverty by doing the right thing?

The Government’s approach has been to say that people on low income who are not eligible for statutory sick pay can claim universal credit or new-style ESA. That is not the answer. Universal credit acts as a vehicle for cuts and the level of support is simply too low.

The four-year benefits freeze will only come to an end in April, and, as a result, families living in poverty have been left £560 a year worse off on average, so will the Government raise the level of social security payments in order to build resilience in people facing the virus? The five-week wait for the payment of universal credit means that there will remain a risk that people will go on working when unwell. The Government say that people can request an advance, but advances are loans that have to be paid back, often on top of other debts built up during that period, so will the Government commit to ending the five-week wait, and will they change their loan into a non-repayable advance?

My hon. Friend is making some excellent comments. I understand that a major international fast food chain has told its employees that if a branch has to close because of infection, business being quiet or Government action, the employees will receive only statutory sick pay, and those on zero-hours contracts will get nothing. Does my hon. Friend agree that that will make it harder for employees to do the right thing, and that it constitutes exploitative behaviour on the part of the employers which must be condemned and stopped?

My hon. Friend has made a very important point, highlighting the vulnerability of people in insecure work who do not have enough support and also the levels of statutory sick pay, which are not sufficient to cover people during the crisis.

My hon. Friend is making a powerful speech. May I echo the point that she made about Denmark? I understand that both the French and the Italian Governments are seeking to introduce exactly the same system to support workers who would otherwise be laid off. The money is being paid directly to companies to ensure that they can retain those employees and the business can be kept alive as well.

That too is a very important point. The Labour party is working with the TUC and others on a package of measures, and looking at the Danish model in particular.

We want people to be reassured that they will not lose their jobs and their income, so they can go on spending. That would prevent a sharp fall in demand, and would also ease business confidence, as firms would see the Government take on part of their wage bill. It is an approach that involves employers, trade unions and the Government working together to preserve jobs and protect people from poverty. We are calling on the Government to explore these options, and we are prepared to work in partnership to make that happen.

There is a real danger that people who have already been pushed to the margins of our society will be worst affected by this crisis, and those who are struggling on low incomes, are disabled or are unable to work will be affected particularly badly. As I have said, we are working with the TUC and others on a range of measures to extend and raise statutory sick pay, abolish the five-week wait and sanctions, and provide income and wage support along the lines of the Danish model. We also wish to join in discussions with the Prime Minister about emergency universal basic income. We need leadership from the Government to ensure that all are protected if they fall ill, are forced to self-isolate, see their jobs at risk, or face unemployment. More than ever, we need leadership and policies that reflect the responsibility we all have for one another.

We are in extraordinary times. The coronavirus pandemic is the most serious public health emergency that our nation has faced for a generation, but the Government will do whatever it takes to get our nation through it. We all need to pull together. We can, must and will get through this.

Before I proceed to the main part of my speech, I want to pay tribute to all our fantastic staff, particularly those on the frontline who are doing their level best, where they can, to enable some of the most vulnerable people in society to continue to receive benefits, and to enable those who now need to gain access to those benefits to do so. The spirit of this debate shows Parliament at its best—we are all seeking to work in partnership.

These are uncharted times, and there are new things coming forward. I have talked to lots of stakeholders in the past few days as we have made announcements about our Department. In normal times, we could spend 18 months developing policies—testing them, carrying out engagement up and down the country, and talking to people with real-life experiences to make sure there are no unintended consequences—but we are on a daily basis having to review things. It is a credit to the Opposition that this debate is being conducted in a spirit of partnership, so that we can look at and feed in things that need to be considered to provide further support—I know that more support will come forward on a daily basis.

Our policy is to protect lives and fight this virus with everything we have. Everyone should follow Government guidance to control the spread of the disease. Those who have a high temperature or a new contagious cough, and those who share a home with people presenting these symptoms, should stay at home in self-isolation for 14 days. Everyone should avoid unnecessary travel and social contact with others, and people who can do so should work from home. That will help to protect the NHS and safeguard the most vulnerable.

The Minister is very dutiful in doing his job, for which I thank him, but I have had contact today from a mother who is isolating because of her child. Is she eligible for sick pay from the Government, or does she have to take unpaid dependants’ leave, which would be very unfair? Just how can that work?

When people in work are isolating due to Government guidance, which seems to be the case in the circumstances that the hon. Gentleman describes, they would be eligible for statutory sick pay through their employers. In addition, it is always worth their looking on gov.uk to see whether they can get additional support through the welfare system, whether universal credit or new-style ESA.

Like the Minister and other hon. Members, I am looking to be collaborative, as I generally try to be, particularly in this type of circumstance, but the issue raised by the hon. Member for Strangford (Jim Shannon) typifies the confusion surrounding the guidance and support for people, which was why my right hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) recommended at Prime Minister’s questions some form of minimum income guarantee that would cover all these issues and mean that people could just do what is right at the right time without having to worry about the financial consequences. Is the Department looking at that?

I thank the hon. Gentleman. I have said many times at the Dispatch Box that I admire the way that he contributes and offers support in trying to help some of the most vulnerable people in society. There were two aspects to his question, the first of which was about general communication. These are fast-moving events, and all constituency MPs are getting a lot of correspondence that asks very reasonable questions. We are trying to give answers that are as good as possible, but we really have to keep pushing people towards the gov.uk website, on which there is consistent communication. On the second point about a minimum net, that is where the welfare system comes into play, because statutory sick pay—it is important, and I will go over that—applies in only some cases, whereas the welfare safety net applies to all who need it.

I believe the Minister will know that cross-party working is in my DNA, and I really do want to do everything I can to make sure we get this right. This is a personal but pertinent point: my son Stuart is self-employed; he has a wife who has had dialysis since she was 14, and a 10-year-old son, Liam. They are all self-isolating; Stuart does not have an income. They live in rented accommodation and utilities are essential to keep the dialysis going. I have a very frightened family and very many frightened constituents. We would be most grateful for any clarification on what we can do.

I have worked very closely with the hon. Lady on a number of issues, and I know that she is held in huge respect across both sides of the House.

Prior to being an MP, I ran my own business, so I understand the concerns of self-employed people who have suddenly overnight seen dramatic changes to their cash flow and ability to trade as a business. I absolutely understand the worries that people will have, which is why we are allowing access to statutory sick pay or, depending on people’s personal circumstances, looking at whether they can turn to new-style ESA—the contributory benefit—which is probably the case for the self-employed, or the wider support offer through universal credit and the welfare net. People would need to look at their circumstances and talk to the jobcentres. We are all trying to do our best to provide as much certainty as possible, as quickly as possible, through the daily updates.

The Minister will know that many people are really worried about the financial impact of self-isolation, whether they are sick or not. He has mentioned sick pay a few times and the alternatives of universal credit and ESA, but those sums simply will not pay the rent or the bills, or put food on the table. The Minister also mentioned the speed at which action is needed and how much faster his Department is having to react than normal. If it takes till next week to put in place legislation, many more people will have not taken action to protect themselves and everybody else. Action is needed now and people need the money now. Will he please respond on that point?