New protections for workers closer as MPs back Employment Rights Bill

A major step was taken towards resolving key issues in the labour market last night after MPs voted to approve the government’s Employment Rights Bill

Significant measures in the Bill include:

  • The right to guaranteed hours for zero hours workers.
  • Protection from unfair dismissal from day one in the job.
  • Sick pay for all workers, from the first day of absence
  • The right for unions to access workplaces to speak to workers.
  • The establishment of a state Fair Work Agency to bring together existing bodies to better enforce the law.

The common sense reforms take a step towards resolving key issues for many workers, such as being parked on zero hours contracts for months or years on end. Or workers being afraid to take a better job because currently they can be dismissed for no reason within the first two years.

Such steps take the UK closer to equivalent countries in the strength of its employment law.

They could also provide a £13 billion annual boost to the UK’s lacklustre economy.

After consultations with businesses, trade unions and the wider public at the end of last year, the government tabled a number of other notable changes when the Bill returned to parliament this week.

Here are some of the key ones:

Zero hours contracts

Agency workers will have to be offered guaranteed hours contracts reflecting their normal hours, based on a 12-week reference period. This closes a loophole that could have allowed employers to switch from employing zero hours workers directly to hiring them via an agency.

There is a provision that new rights to guaranteed hours, reasonable notice of a shift and payment for cancelled, moved and curtailed shifts can be changed if workers and an employer agree alternative arrangements in a collective agreement. This means arrangements can be tailored to suit particular workplaces.

Sick pay

The government has confirmed that workers will be entitled to receive minimum sick pay of 80 per cent of their normal wages or statutory sick pay, whichever is the lower. This largely affects workers who are not currently entitled to statutory sick pay. The government had modelled a rate as low as 60 per cent.

Union access

The right for a trade union to access a workplace to support workers and talk to them about joining has been extended to a digital right of access as well. This will be especially important where workers work outside an office and are better contacted by digital means such as email or intranet posts.

Unions have been given stronger rights to access workplaces when workers are seeking recognition. Employers will be barred from carrying unfair practices to undermine unions from the start of the process.

Trade union rights

Current law deliberately ties unions up in red tape, which gives employers great opportunities to challenge strike action in the courts on technicalities. This will reduce somewhat as the government reduces the amount of information unions must disclose to employers when they launch a strike ballot.

Meanwhile, notice for strike action will be cut from 14 days currently to ten days. And the mandate for taking strike action after a vote in favour doubled to 12 months.

Industrial action is a last resort for trade union members. After all, workers usually suffer a significant loss of income. But a vote for action can give real weight to union negotiations and kickstart talks when progress has stalled.

These changes mean some of the artificial barriers to action have been removed.

Work still to do

While the Employment Rights Bill will take important steps towards a fairer economy, there are further reforms required. These include:

  • Some workers could receive less sick pay under these changes than they currently receive. This should be remedied and a review conducted to improve the paltry headline rate of SSP.
  • A huge amount of detail will be set out in subsequent regulations laid by the government. It is crucial that new “initial periods of employment” during a worker’s first nine months in the job provide sufficient protection from unfair sacking, including a route to take a case to the employment tribunal. And that loopholes are not opened up stopping workers getting guaranteed hours contracts.
  • The Bill makes it easier for workers to gain recognition for their trade union. But leaves in place a law requiring a three-year gap between recognition attempts, benefiting union-busting employers. This gap should be significantly reduced.
  • The government will delay the repeal of a Tory measure that requires a 50 per cent turnout for a strike law to be valid until after it has introduced electronic balloting.
  • The government has pledged to reform current employment status rules that govern whether someone is self-employed, a worker with some rights, or an employee with full rights. An overhaul is needed to stop exploitative employers attempting to deny workers their protections.

The passage of the Employment Rights Bill represents another significant step forward for working people.

The recent amendments further strengthen government efforts to crack down on worker exploitation and strengthen their voice in the workplace. 

TUC: Work-related ill-health is costing the UK economy over £400 million a week

  • New analysis shows that number of days lost due to work-related ill-health has rocketed by a third since 2010 to 34 million days 
  • Work-related ill-health reduced economic output by £22bn in 2023
  • TUC says findings highlight the importance of driving up job quality in the UK and stronger rights at work ahead of Employment Rights Bill returning 

Work-related ill-health is costing the UK economy over £415 million a week, according to new TUC analysis published on Monday. 

The analysis of official statistics shows that the number of days lost due to health conditions – including stress, depression and anxiety – has shot up by a third since 2010. 

In 2023 to 2024 (the latest year for which figures are available) 34 million working days were lost to work-related ill-health – compared to 22 million in 2010. 

The TUC says the findings – which are published as the Employment Rights Bill returns to parliament – show the “urgent importance” of improving the quality of work in the UK. 

In 2022 to 2023 (the latest year for which figures are available) work-related ill-health is estimated to have reduced economic output by £21.6bn. 

Boom in insecure work 

The TUC says the rise in days lost to work-related ill health has coincided with a huge boom in insecure work. 

The union body estimates that over a similar period (2011-2023) the number of people in precarious employment also rocketed by a third to over 4 million. 

A separate report out this week from the Commission for Healthier Working Lives suggests that poor quality work can harm employee health. It states:

“Most health conditions develop outside work, but for a significant number of people, work itself is the cause. Persistent insecurity, workplace discrimination and extreme demands take a serious toll on health. In some cases, poor-quality work is even worse for health than being unemployed.” 

The TUC says driving up employment standards will help improve staff well-being, health and productivity. It will also ensure that more people with disabilities or health conditions can stay in work.  

This view was backed up by polling last autumn which revealed that:  

  • Three-quarters (75 per cent) of managers think that strengthened employment rights will improve employee health, compared to just 4 per cent who disagree  
  • Seven in 10 (74 per cent) believe that strengthening employment rights will improve workforce retention, compared to just 6 per cent who do not.   

Employment Rights Bill back in parliament 

The government’s Employment Rights Bill returned to parliament this week for its report stage. The Bill will deliver “common-sense reforms” which bring the UK closer to the European mainstream on workers’ rights, the union body says. 

The TUC says the legislation will help to deliver better quality work in every corner of the country by cracking down on insecure work and banning exploitative zero-hours contracts. 

TUC general secretary Paul Nowak said: ”Improving the quality of work in Britain is good for workers and our economy. Work related ill-health is costing us hundreds of millions each week – that’s billions of pounds down the drain every year. 

”That’s why the government’s Employment Rights Bill is so important. Cracking down on exploitative practices like zero-hours contracts and giving people more security will boost workers’ health, well-being and productivity. It will also help more people stay in work.  

“We need to turn the corner on Britain’s low-rights, low-pay economic model that has been tested to destruction over the last 14 years. Giving working people more control and predictability over their lives will help create a happier, healthier and more robust workforce.” 

Businesses: Meet the Council!

DROP-IN FOR BUSINESS SUPPORT

Businesses in Edinburgh are being invited to engage with dozens of Council services and business-facing partners face to face.

Meet the Council event will be held on Tuesday 11 March at the Assembly Rooms on George Street between 10:00am and 2:00pm.

Local businesses are encouraged to register in advance to secure a space to the drop-in, with opportunities throughout the day to meet with key Council teams and hear about opportunities for business growth.

Offering a single point of access for business support, the event will bring together Council officers from:

• Building standards
• Business Gateway
• Commercial property
• Cultural events
• Economic development
• Edinburgh Convention Bureau
• Environmental health
• Film Edinburgh
• Forever Edinburgh
• JET (Jobs, Education & Training)
• Licensing
• Non-Domestic Rates
• Parental Employability Support
• Planning
• Procurement
• The Edinburgh Employer Recruitment Incentive
• The Edinburgh Guarantee
• Trading standards
• Visitor Levy

Throughout the day, external partners will also be on hand to present and share their expertise, including:

• Edinburgh Chamber of Commerce, an independent membership organisation which supports over 1,000 organisations who employ more than 120,000 staff in the Capital
• British Business Bank, a government-owned economic bank specialised in helping businesses in the UK access financial support
• Federation of Small Businesses, a non-profit organisation that helps small businesses and the self-employed
• Capital City Partnership, the anchor delivery body for Edinburgh’s employability strategy, working together to tackle inequality and poverty
• Edinburgh Social Enterprise Network, which works to create opportunities for Edinburgh’s Social Enterprise community to develop and thrive
• Forth Green Freeport, Scotland’s largest opportunity to deliver a just transition to net zero, to attract significant inward investment, to build international trade and export capability, and to create high quality and well paid jobs.

Councillor Lezley Marion Cameron, Housing, Homelessness and Fair Work Convener, said: “Edinburgh continues to have the strongest local economy outside of London and the highest number of registered Living Wage employers in Scotland.

“The entrepreneurialism, success and resilience of Edinburgh business owners contributes hugely to what makes our City of Edinburgh a unique and special place to live and work.

“We would like to work much more closely with the business community in offering meaningful support, understand more fully the views, concerns and aspirations of business owners and work jointly in securing a vibrant, sustainable, and resilient economic future for Edinburgh.

“We recognise that the current economic climate is challenging, and in working together with businesses and other partners, there is much we can do collectively to grow and sustain Edinburgh’s economy, promote the benefits of Fair Work, and become a fairer city for all. That’s why the Council is hosting this opportunity for businesses to meet us face-to-face and engage with our staff teams across a variety of services which support business.

“Whether you’re looking for advice on funding, navigating licensing, or exploring how we can support employers, this event is an ideal place to connect directly with the right people, who can provide the advice and support you need.”

The Meet the Council event is designed to support Edinburgh’s business community and help foster a thriving, greener, and fairer economy – as outlined in the Council’s Business Plan 2023-27.

Aldi opens appplications for apprenticeship roles in Edinburgh

Aldi is looking to recruit over 500 new apprentices across the UK in 2025, including in Edinburgh and the Lothians.  

The UK’s fourth-largest supermarket is welcoming applications for its apprenticeship scheme, with opportunities now live across stores and warehouse roles.  

At Aldi, Store Apprentices can earn £8.61 per hour, rising to £12.07. Inside the M25, Store Apprentices can earn £8.84 per hour, rising to £12.72. Meanwhile, those in warehouse roles can earn up to £11.18 per hour.  

Successful applicants will be able to gain industry-recognised qualifications while they earn and will have access to a number of additional benefits, including a range of shopping discounts, a bike to work scheme, 28 days’ paid holiday (including bank holidays) and a mortgage advice option where colleagues can seek free mortgage advice and access mortgage education.  

Aldi is also one of the only UK supermarkets to offer paid breaks. 

Lisa Murphy, Training and Development Director at Aldi UK, said: “We have found so many hard-working and ambitious people through our apprenticeship scheme over the years, and we’re excited to welcome the next intake of individuals to join our Aldi community. 

“Through the scheme, candidates will gain valuable transferable skills, become experts in their roles, and receive industry-leading pay at one of the UK’s top grocery retailers.  

“We’re keen to attract individuals from all backgrounds, and we really encourage anyone who is interested to apply, no matter your level of experience.” 

Those interested in applying for the apprenticeship scheme with Aldi can visit www.aldirecruitment.co.uk/early-careers/apprenticeships

Acas publishes new advice to raise awareness of neurodiversity at work

Workplace expert, Acas, has published new advice on neurodiversity to help employers create inclusive organisations and raise awareness at work.

Neurodiversity describes the natural differences in how people’s brains behave and process information. Some well-known types of neurodiversity include ADHD, autism, dyslexia and dyspraxia:

  • ADHD stands for attention deficit hyperactivity disorder and affects people’s behaviour;
  • Autism is sometimes called a spectrum condition and affects how people communicate and interact with the world;
  • Dyslexia mostly affects reading and writing skills and is sometimes referred to as a learning difficulty; and
  • Dyspraxia affects movement and co-ordination

A lot of neurodivergent people do not see themselves as disabled but will often be considered as having a disability under the Equality Act.

Acas Head of Inclusive Workplaces, Julie Dennis, said: “Employees may not want to tell people that they are neurodiverse or may mask their condition due to concerns about a negative reaction at work.

“Bosses also need be aware that the strengths and challenges that come with a neurodiverse condition may not be the same for everyone.

“Our new advice has tips for employers on how to raise awareness, be inclusive, sensitive and stay within the law when managing neurodiversity at work.”

The Equality Act gives disabled employees protection against discrimination and the right to reasonable adjustments at work. A reasonable adjustment is a change that an employer makes to remove or reduce a disadvantage related to someone’s disability.

Acas ran its own poll on neurodiversity with 1650 line managers in November last year. It asked about the barriers to making a reasonable adjustment for neurodiverse employees. The barriers identified by respondents included:

  • Over seven out of ten (72%) said employees not disclosing the need for a reasonable adjustment;
  • Lack of organisational knowledge about neurodiversity was reported by 45%; and
  • 39% said it was due to line managers finding it difficult to have the conversation.

Acas advice is that employers should make their organisation more inclusive so that staff feel comfortable sharing and talking about neurodiversity.

Raising awareness can help normalise it, which can help ensure employees get the support they need. Being inclusive can help:

  • improve staff wellbeing;
  • reduce absence levels and employee turnover;
  • attract employees with a wider range of skills and experience; and
  • reduce the risk of disputes and legal claims on discrimination.

Acas has some top tips for employers on raising awareness of neurodiversity at work such as:

  • include it in their organisation’s mandatory training;
  • run awareness days and campaigns;
  • encourage senior employees to act as role models;
  • set up a staff network for neurodiversity; and
  • cover the topic in induction materials.

Acas’s full advice has information about various different types of neurodiversity, their common traits, how the Equality Act 2010 applies to neurodiverse employees, how to support people, raise awareness and approach it sensitively at work: 

www.acas.org.uk/neurodiversity

Fraser of Allander: What next for social care in Scotland?

HOW STRONG IS THE SCOTTISH LABOUR MARKET?

LAST WEEK the Scottish government confirmed that plans for a National Care Service (NCS) in Scotland have been scrapped in favour of an advisory board and smaller, more targeted reforms (write FRASER of ALLANDER INSTITUTE’s MAIRI SPOWAGE and EMMA CONGREVE).

The decision came after months of declining support from key organizations and stakeholders including COSLA, key trade unions and representative bodies for social care providers in Scotland.

Beyond the wavering support for the NCS plans, there is clear support for social care reform, particularly in enhancing access to and the quality of services.

Our interest in the National Care Service, and wider social care reform stems back to 2022, in which we conducted analysis of the NCS bill published in June of that year. Following this work, published in August 2022, we engaged with a number of stakeholders across the private, public and third sector.

Among concerns around governance and funding of the NCS, one of the key concerns from stakeholders we engaged with was the lack of good quality and timely data that is crucial to ensuring that any reforms to social care are well informed. In particular, the need to better understand what future levels of social care demand might be, the workforce requirements to accommodate this, and the associated expenditure on social care.

Our concerns about the lack of investment in social care research were highlighted in our response to the Wave 2 consultation. The Scottish Government has not commissioned any work in this area, and we have not been able to find independent funders willing to fund work of this nature in Scotland.

It is our view that projections of demand and cost of the current service, and any future reforms, is urgently required.

New labour market data published

The latest data on the labour market in the UK was published last week. There are many documented issues with the data at the moment due to the challenges faced by the Labour Force Survey, which means the headline figure are no longer considered accredited Official Statistics.

If you can set that aside for a moment, the headline results show on the surface a strong Labour market in Scotland, with high employment (74.1%) and low unemployment (3.8%). Inactivity rates remain slightly higher than the UK at 22.9%.

There are a number of other data sources published alongside the LFS data which is used to supplement our understanding of what is going on in the Scottish economy. One of these is the payrolled employment data, known as the PAYE Real-Term Information, which is published every month by the ONS. This draws on administrative records, and so is likely to be more reliable in terms of employment (although, of course, tells us nothing about unemployment or inactivity).

This data shows that payrolled employment is almost 3% higher in Scotland than pre-pandemic levels. However, we had a look at replicating the sectoral breakdowns in this interesting piece by think.ing, which looks at government-dominated sectors vs the rest.

Chart: Payrolled employment in all sectors, government dominated sectors (public administration, health and education, and total excluding government, Scotland, January 2020=100

Source: ONS

This shows that once the government dominated sectors are excluded, payroll employment has been falling since March 2024, and is now almost back at the levels seen in January 2020. In contrast, government dominated sectors are 8% about pre-COVID levels.

Given some of the challenges facing the private sector in the first half of 2025, including large increases in employer National insurance contributions which will come in in April, the trend in private sector employment is concerning, and points to a weakness masked if we just look at employment in total.

However, it is worth emphasising again that this is just payrolled employment, and does not cover self-employment.

Council proud to recognise the Jobs First Programme

The Council is proud to recognise the work of Social Bite’s Jobs First programme through our parking contractor NSL (part of Marston Holdings).

We’re also sharing the inspiring story of Patrick who has benefitted from this programme and is now employed as a Parking Attendant here in Edinburgh.

Jobs First was established by Social Bite in October 2021 as a pathway for homelessness experienced individuals to employment – and in that time they have helped over 90 people. 

The programme guarantees living wage employment for each person and provides wrap-around support for both the employer and employee.

Each Jobs First employee is allocated a support worker from Social Bite who assists them throughout the programme and their employment contract, meeting weekly initially to offer practical support on bills and forms, as well as emotional guidance and confidence building to adapt to working life.

Social Bite also provides training to each employer to help them appropriately guide the employee while the support worker will help facilitate appraisal processes and employee progress.

Today we’re sharing Patrick’s story to highlight how the programme has had a positive impact on his life and in turn added value to the services we provide to the people of Edinburgh.

video on this is available on the Council’s Instagram account.

In October, the prestigious ‘Parking in the Community Award’ was also awarded to the Council, NSL and Social Bite at the British Parking Awards, recognising this important work.

Council Leader Jane Meagher said: “Homelessness is one of the key challenges that we face in our city and I’m incredibly proud of the work that is ongoing between our services and Social Bite on the Jobs First programme.

“Behind every case of homelessness is an individual story and Patrick’s shows what can be achieved when the right support is in place. Gainful employment is about so much more than simply earning a wage. It’s a route to rebuild a life with confidence, social relationships and other transferrable skills.

“I’m hopeful that this relationship with Social Bite will continue for many years to come and that we can help more individuals like Patrick to overcome these difficulties and lessen the impact of homelessness in Edinburgh as much as we can.”

Emma Colgan-Blair, Social Bite’s Jobs First Programme Coordinator, said: “Over the past three years, Social Bite’s partnership with NSL and the City of Edinburgh Council through the Jobs First programme has helped people affected by homelessness build brighter futures.

“With a shared ethos of creating pathways to employment, together we’ve been able to support many individuals like Patrick to achieve financial stability, career growth, and personal transformation. This collaboration shows the life-changing impact of offering people from all walks of life the right support and opportunities.”

Keith Hanshaw, Group Managing Director of NSL, said:Marston Holdings have been supporting Social Bite since 2022. We work closely with them in Edinburgh and across the UK to support those who have experienced homelessness through meaningful permanent employment opportunities.

“Social Bite were also voted internally to be one of our two Christmas reward sponsors. We have employed numerous people like Patrick and look to continue to do so for many years to come. We are really proud of the impact this makes on our local communities.”

Business leaders join forces to get thousands of offenders into work

Major new drive to get offenders into stable jobs and away from a life of crime

  • New Employment Councils to bring probation, prisons and local businesses together
  • Household UK names including the Co-op and Oliver Bonas backing new initiative
  • Scheme aims to get more offenders into work to cut crime as part of Plan for Change

Bosses from household names including Greggs, Iceland and COOK will be among those to sit on new Employment Councils supporting offenders serving their sentence in the community into work.

They will build on the success of prison Employment Advisory Boards, which were created by Lord Timpson before he became a government minister. These have brought local business leaders into jails to improve education and prisoners’ ability to get work when released.

The new regional Employment Councils will expand this model out to the Probation Service and the tens of thousands of offenders serving their sentences in the community.

Each council will also have a representative from the Department for Work and Pensions (DWP) to help improve links with local job centres.

The initiative was a manifesto commitment and will play a crucial role in the Government’s mission to make streets safer by tackling reoffending under the Plan for Change.

Around 80% of all crime is reoffending but latest data shows offenders employed six weeks after leaving prison had a reoffending rate around half of those out of work.

Alongside breaking the cycle of crime, getting offenders into work helps employers fill vacancies, build their businesses, plug skill gaps and boost the UK economy.

Minister for Probation, Prisons and Reducing Reoffending, James Timpson, said: “Getting former offenders into stable work is a sure way of cutting crime and making our streets safer. That’s why partnering with businesses to get more former offenders into work is a win-win.

“The Employment Advisory Boards I spear-headed have made huge progress and now these Employment Councils will expand that success to steer even more offenders away from crime as part of our Plan for Change.”

Employment Councils will provide support to frontline probation staff already involved in getting offenders into work. They will provide them with a greater understanding of the local labour market and help build better relationships with suitable employers.

Further support from the DWP will help link offenders with work coaches placed at job centres throughout the country.

These coaches will be on hand to get offenders job-ready through mock interviews, CV advice and by sharing tips on how to secure further training opportunities in the community.

DWP Lords Minister, Baroness Maeve Sherlock, said: ”As well as making our streets safer, helping offenders into work will enable employers to fill vacancies and plug our skills gaps.

“This work is vital in our Plan for Change as we begin our task of fixing the fundamentals of the social security system and progress with wider work to reduce poverty, put more money in people’s pockets and keep our streets safe.

“That’s why I am pleased that DWP staff will also be a part of the new regional Employment Councils to directly connect them with the frontline support delivered every day by Jobcentre staff across the country – offering work experience and access to our employment programmes.”

Research from the Ministry of Justice shows that 90% of businesses that employ ex-offenders agreed that they are good attenders, motivated and trustworthy

Rosie Brown, co-CEO of COOK, said: “A job provides a key way to help people restore their lives and relationships following a stretch in prison.

“In return, we get committed, loyal team members to help us build our business.  Re-offending is reduced, and families, communities, and society as a whole wins.”

Employment Councils will serve as the successor to regional Employment Advisory Boards and will officially bring together probation, prisons, local employers and DWP under one umbrella for the first time, with a renewed focus on broadening support to offenders in the community.

The Boards will continue at 93 individual prisons but the addition of regional Employment Councils will help prison leavers look for work across an entire region, not just the immediate vicinity of the last prison they were in.

Sick pay decision for two million low-paid workers could have huge impact on families’ living standards

How much should someone receive when they are off sick from work?

This is the question that ministers were considering over Christmas. And the answer they arrive at will have a huge impact on many households’ budgets (writes TUC’s TIM CLARK).

For the majority of workers today the answer to that question is straightforward: when they are ill they simply receive their normal salary for a period.

Others, particularly many low-paid workers get less-than-generous statutory sick pay (SSP), currently £116.75 a week, if they are ill. But this only kicks in from the fourth day of absence.

More than a million workers wouldn’t receive anything when absent because they earn too little to qualify under current rules. They are often part-time workers and are predominantly women.

This means many workers face hardship if they suffer illness or injury or risk spreading illness in their workplace by attending while sick.

This could change as ministers implement their promise that “no one should be forced to choose between their health and financial hardship”. 

Measures in the Employment Rights Bill being considered by MPs will scrap the qualifying earnings test and sick pay will be paid from the first day of absence in future.

The options on the table

But how effective these changes will be rest on the percentage rate to be paid to low earners. 

government consultation on the rate closed earlier this month.

Among the options modelled was an SSP payment as low as 60 per cent of wages.

This would be the entitlement for the lowest paid 2.3 million workers,

Under the current proposals, this could lead to some 1.1 million workers who are currently entitled to full SSP eligible for less under the new system because they currently get full SSP, albeit at less than £117 a week.

The TUC is urging the government to ensure that workers receive the lower of their earnings or statutory sick pay. At the very least they should receive 95 per cent of pay to reflect the payments received by the lowest-earning workers who currently qualify for SSP. 

For this is not a cold exercise in abstract numbers. There is a risk that some low earners could miss out the equivalent of a family’s food budget if ministers opt for lower pay-outs. 

Scenarios set out below show the potential real-world impact of ministers’ decisions.

Scenario one

Rita works 10 hours a week (two hours a day) in an office canteen on the national minimum wage. Her partner is a sales assistant earning £25,000.    

One weekend, Rita sprains her foot and is unable to work that week.

She has no access to occupational sick pay and currently would be unable to claim SSP as she earns under the lower earnings limit of £123 required to qualify. This means that the household income is cut by £114.40 a week. 

She struggles to give her three children money for their daily school meals and out-of-school sports activities and has to use money set aside for the next energy bill.

Under the new system, if the rate is set on the basis of the lower amount of earnings or SSP she would receive £114.40. 

However, a 60 per cent rate, one of the options modelled by the government in its latest consultation would mean she only receives £68.64. This cut of £45.76 is close to what a family spends on school meals for three children every week. 

Scenario two  

Sam is a single parent earning the national minimum wage at a food factory – working part time for nine hours Monday to Wednesday and gets paid weekly. 

Sam catches a nasty cold and is unable to work Monday to Wednesday. She has no access to occupational sick pay, and, under the current system doesn’t earn enough to qualify for SSP.

She claims Universal Credit and by notifying the DWP about a drop in earnings in the next assessment period could receive a higher universal credit payment. But this wouldn’t be paid out for more than a month, leaving her immediate bills to pay.

But if payouts were the lowest of SSP and actual earnings Sam would have received £102.96 in wages.

A 60 per cent rate would mean getting only £61.78. This £41 drop is more than the typical £35.40 that a family in the lowest income decile spends on groceries and non-alcoholic drinks (families overall spent on average £63.50 a week according to the official figures from 2023). 

This means that Sam and her two children would struggle to buy food that week, although they would be better off than currently. 

Scenario three  

Raj works two jobs. On Monday to Tuesday he works part time at a retail store for three hours a day. He works at a florist on Wednesday and Thursday for two hours. 

This is to fit in with caring responsibilities for three children with his wife who works at the local biscuit factory from Monday to Friday (9-5pm). She earns slightly above the national minimum wage, and both Raj’s jobs are on the minimum wage. 

Due to a car accident, he is unable to work for three months – this causes immense pressure on the family finances as during this period Raj receives no earnings.

If he received SSP based on his actual earnings this would have been £114.40 a week.

But at a 60 per cent rate he would receive £68.64 a week. This would mean that over the course of 12 weeks he would receive£549.12 less than if he was getting his normal earnings.

This is equivalent to almost two years’ worth of spending on clothes and footwear for a family in the lowest income decile at £5.60 a week.

Conclusion 

The coronarvirus outbreak showed the dangers of an inadequate sick pay system.

Lots of frontline workers were forced to choose between falling into poverty because they got no or little sick pay, or continue to work and risk spreading the virus.

Four years on and many workers continue to face similar dilemmas every week.

The government is making the right choice in extending sick pay to all workers, without an income test.

But when ministers announce payouts for low-paid workers in the coming weeks, they should peg them to SSP or wages, whatever is the lower. And no-one should be entitled to less after the changes, than they are now.

Then the next stage will be ensuring that the headline rate of SSP is improved.

Asylum seekers: Minister calls for right to work pilot in Scotland

Equalities Minister Kaukab Stewart has called for the UK Government to consider a pilot proposal in Scotland which would give people seeking asylum the right to work in some parts of Scotland.

The Scottish Right to Work Pilot Proposal proposes a number of changes to current UK policy, including enabling the right to work from six months instead of twelve months, and removing restrictions on the types of work they can undertake. Additionally, those on the pilot would have access to support around key topics such as employability and language learning.

A report from the Scottish Government’s independent Expert Advisory Group on Migration and Population, published in December 2023, shows that granting people who are seeking asylum the right to work at an earlier stage could improve their wellbeing and integration, reduce their risk of exploitation, and have longer-term benefits to our economy and public service delivery.

Ms Stewart said: “Scotland has a long history of welcoming refugees and people seeking asylum. We believe that giving people seeking asylum the right to work from an earlier point can have a positive impact on them, their families and our communities.

“This means that following a positive decision they will be better equipped to support themselves and their families. 

“These measures would also enable asylum seekers to integrate more quickly, making a positive contribution to our workforce and economy by reducing the cost and demand on our public services.

“We ask that the Home Office engages with us to take forward this pilot proposal, in collaboration with our partners.”

Scottish Asylum Right to Work Proposal – gov.scot (www.gov.scot)

Asylum seeker rights: Letter to UK Government – gov.scot (www.gov.scot)

In December 2023, the Scottish Government’s independent Expert Advisory Group on Migration and Population published the report Asylum Seekers – extending the right to work: evaluation, analysis, and policy options.