As millions of people across the UK face mental health challenges, many are forced to leave the workforce due to illness. The existing sick pay system, which lacks flexibility, often exacerbates these difficulties, making it harder for people to return to work after an absence. A small but impactful change to the way sick pay is structured could significantly benefit individuals with mental health conditions, employers, and the government alike.
Currently, the UK government has proposed some positive changes to sick pay, including removing the waiting period for statutory sick pay (SSP) and eliminating the lower earnings limit, which would make more people eligible for sick pay. These are welcomed steps, but they fall short of addressing the needs of individuals recovering from mental health issues who require a more gradual return to work.
Under the current system, SSP is stopped as soon as an employee returns to work, which often forces people to choose between resuming work full-time before they are ready or losing much-needed income. This issue affects 300,000 people with mental health problems every year, who drop out of the workforce, contributing to the broader economic challenge of underemployment and the struggle of people to reintegrate into the workforce after illness.
Mind is calling for a change in the Employment Rights Bill that would allow SSP to be paid on an hourly basis, enabling workers to receive both wages and SSP pro-rata for the hours they work. This flexible model would give individuals the opportunity to return to work gradually, working part-time or reduced hours, without losing their sick pay.
Evidence from the Organisation for Economic Co-operation and Development (OECD) suggests that flexible sick pay systems have been highly successful elsewhere, with nearly 90% of workers returning to work after a period of sickness absence. These systems also led to a reduction in the total number of sick days taken. The cost of implementing such a system in the UK is minimal and primarily administrative, but the benefits are substantial. Employers would save money by retaining workers rather than having to recruit and train replacements, and the broader healthcare system would benefit from a reduction in the pressure placed on already overstretched services.
Mind’s call to MPs is clear: support this amendment to the Employment Rights Bill. This simple adjustment to the current sick pay system would not only make a significant difference for people with mental health issues but also for others with long-term health conditions. It would ensure that the sick pay system is fairer, more flexible, and better able to support individuals as they return to work, while also creating cost savings for both employers and the government.
The opportunity for meaningful reform is now, and this small change could lead to far-reaching benefits for individuals and the wider economy.
Minesh Patel is Associate Director of Policy and Influencing at Mind.
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