Statutory Sick Pay Explained

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What is statutory sick pay (SSP)?

Many people simply can’t afford to stay off work because not working means not getting paid, and even the most stable family can rarely afford a significant loss of salary.

While getting a cold for a day or two might require a period of rest to get better, what do you do when the situation leaves you needing more time to recover?

Sick pay is the answer of course - being paid by your work while you stay at home to recover. But company sick pay is not always a guarantee, as there is no legal requirement for an independent workplace to have a sick pay scheme in place.

Statutory sick pay is a government-run scheme that provides a minimal level of support for those in employment who find themselves unable to work.

Who pays sick pay? What is the sick pay entitlement in 2019?

Employers have to pay SSP to all their full and part-time employees who qualify. In 2019, the entitlement is £92.05 per week which is a little over £13 SSP per day. SSP for part-time personnel is paid pro-rata, so it is possible to get considerably less than the maximum of £92.05.

As SSP is paid for by an employer, there is no equivalent to SSP for self-employed people, who simply find themselves out of pocket when sick.

Additionally, SSP is not required to be paid for the first three days of absence, so a chain of simple days off for colds and similar typical minor illnesses can result in a loss of earnings with no recompense.

To qualify for SSP you must earn over £115 per week, and many people find themselves without help.

What are the options? How do I get more money than the SSP allowance?

Living off sick pay, especially SSP that ends after 28 weeks, is impossible for most – yet it is often the only option for someone who becomes sick without having made prior provision. It’s easy to need more SSP, or another supplement. But it’s not easy to get it.

The first option is to hope for (or negotiate) a better workplace sick pay scheme with an increasing monthly allowance for paying employees when they are unable to work. A good workplace sick pay scheme is considered a significant perk to the employment contract by many.

If your sickness has been caused by work – for example, an accident in the workplace that was not your fault, then you do have the option of making a claim for personal injury through a no win no fee personal injury solicitor. Compensation for a workplace accident may be significant and would include a lump sum to cover pain and suffering as well as covering any loss of earnings or expenses.

Of course, neither of these options is perfect. One relies on your employer to feel generous which, while wonderful if it is true, isn’t something that much of the workforce experiences. The other is only relevant in a small number of situations and really doesn’t help you pay the bills that are very much immediate and on your doormat.

Looking at Income Protection

Income protection insurance is the perfect solution to all sick pay worries. As it is set up as a personal policy, there is no need to interact with your employer in any way, and its easily tailored solutions mean that you can create a policy to fit your exact needs.

Plus, it is non-discriminatory, so it can be just as valid for the self-employed or part-time worker as it is for a full-time employee who has been in the same job for decades.

Income protection insurance provides a replacement to your salary for those times you are unable to work. It supplements any other sick pay scheme – including statutory sick pay - and can keep you at the level of financial security you are accustomed to throughout your time away from work.

Income protection offers:

• An adjustable waiting period that allows you to have your cover begin from the first moment you take time off rather than waiting the three days of SSP.
• 65% of your gross salary, paid monthly. Without the pesky bother of income tax, 65% of your gross salary often comes within a few hundred pounds of your typical take-home amount.
• Protection for the self-employed. As long as your accounts are up-to-date and you can show bookkeeping that proves your income, there’s no problem getting income protection to cover you for any unforeseen time away from the business.
• Years of cover. With plenty of long-term policies available, IP cover can extend to many years to help you if that illness or problem becomes more serious. After all, the last thing you need when worrying about your health is to be concerned for your family’s financial stability.

When faced with a long period of relying on statutory sick pay, the realisation that you could have set up income protection mere weeks earlier can be quite upsetting. Of all the options, it’s the one you can trust.

What do I do if I get a serious illness that permanently stops me working?

Statutory sick pay runs out after only 28 weeks. Time limitations like this can be devastating if you have a more significant injury or health problem, as what seems like a long period can suddenly all be eaten up and you are staring with fear into the future.

Serious conditions such as heart or liver failure, cancer, or a breathing illness could result in you being permanently retired from work and SSP simply doesn’t cover the bills for long enough. Even income protection or an independent and impressive workplace sick pay agreement are only going to meet your needs for a limited time.

Here, your answer lies with critical illness cover, often tied in with a life insurance policy. Critical illness cover (CIC) pays out a lump sum if you are diagnosed with one of the conditions listed in the policy and can provide substantial financial support to pay for specialised medical treatment or any alterations to your home, as well as covering bills and other expenses.

How does Quick Quote Protect provide support?

At Quick Quote, we have specialist advisors that can help you with all aspects of life cover. We have many different life insurance and related products, including both income protection and critical illness cover that can be tailored to your personal circumstances.

Give us a call today to see how we can help you maintain financial equilibrium in the face of unforeseen illness – don’t force yourself to live for weeks on the insufficient amount offered by statutory sick pay.