Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure GB-2020-11/586 – Updated – measures in United Kingdom
|Country||United Kingdom , applies nationwide|
|Time period||Open ended, started on 13 March 2020|
|Type||Legislations or other statutory regulations|
Income protection beyond short-time work
– Paid sick leave
|Author||Claire Evans (Warwick University) and Eurofound|
|Measure added||14 April 2020 (updated 21 July 2020)|
On the 17 March, the Chancellor announced a package of government-backed and guaranteed loans to support businesses, making available an initial GBP 330 billion of guarantees – equivalent to 15% of GDP. This was on top of a series of measures announced at Budget 2020 on the 12 March, where the government announced GBP 30 billion of additional support for public services, individuals and businesses experiencing financial difficulties because of COVID-19.
Changes to SSP were part of the initial Budget package, subsequently extended on the 17 March, and accounted for in Sections 39 to 44 of the Coronavirus Act 2020. Section 40 amends the Social Security Contributions and Benefits Act 1992. Under the Coronavirus Act 2020, the changes in SSP will be back-dated to 13th of March.
In order to traditionally qualify for SSP (currently GBP 94.25 and payable by employers for a maximum of 28 weeks), there is a wait of three days before an individual employee becomes eligible. However, under the new ruling, SSP will be paid from day 1, rather than day 4 of an individual's absence from work if that person is absent from work due to sickness or the need to self-isolate caused by COVID-19. This applied retrospectively from the 13th of March.
Moreover, from the 20th of March onwards, those who have COVID-19 or who are advised to self-isolate will be able to obtain an “isolation note” by visiting the National Health Service (NHS) 111 online and completing an online form, rather than visiting a doctor. For COVID-19 cases, this replaces the usual need to provide a “fit note” after seven days of sickness absence.
For those not eligible for SSP e.g. the self-employed or those earning below the Lower Earnings Limit of GBP 118 per week, but who have COVID-19 or are advised to self-isolate, the government says that they can now more easily make a claim for Universal Credit (UC) or new style Employment and Support Allowance.
For those who are self-employed and receiving Universal Credit with COVID-19 or advised to self-isolate, the requirements of the Minimum Income Floor will be temporarily relaxed. This change took effect on 13 March and will last for the duration of the outbreak, to ensure that self-employed UC claimants will receive support.
Employees in standard employment
||Does not apply to businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
The social partners were informed as to the raft of measures to be introduced at the beginning of the coronavirus pandemic; however, they were not formally involved in the design, implementation or monitoring of this measure.
The Chancellor is reported to have met and worked with trade unions and business groups, in order to support peoples' financial security. There is evidence on Hansard (official record of proceedings in Parliament) that the Chancellor 'spoke to the trade unions' on the 18th of March and on the 19th of March, he met with the TUC, the CBI, the BCC and the FSB. This was done with a view to urgently developing new forms of employment support to help protect people’s jobs and incomes through this period (see https://hansard.parliament.uk/lords/2020-03-19/debates/8B1662BD-F065-4731-AA48-5BA21424C2D0/Covid-19EmploymentSupport). There are no explicit details of discussion.
Previously, the TUC had called for changes to the SSP system. On the 18th of March, the TUC stated that the sick pay system is 'broken', stating that at a maximum of GBP 94.25 per week, Statutory sick pay (SSP) is not enough to live on. The TUC further averred that the average worker earns GBP 512 per week, so for the estimated 7 million people who may come to rely on SSP, any time off work will constitute 'a large income shock.'
The TUC also pointed out that many people aren’t eligible for SSP, as approximately 2 million people do not qualify for such payments due to the fact that they do not meet the lower earnings limit of GBP 118 per week. The TUC criticised the Chancellor for not extending eligibility for sick pay to these lower earners; he instead pointed them to the benefit system. He has announced minor improvements to the way the benefit system operates, but the TUC is still critical that the system will fail to provide appropriate support, mainly due to the five-week wait for first payment and the low level of benefits then provided (Employment and Support Allowance is just GBP 73.10).
The TUC thus called on the government to remove the lower earnings limit for qualification for sick pay. It also urged the government to immediately increase the weekly level of SSP (GBP 94.25) to at least the equivalent of a week’s pay at the Real Living Wage, as well as to end the five-week wait for benefits (see https://www.tuc.org.uk/blogs/coronavirus-help-what-workers-need-now).
Eurofound (2020), Changes to statutory sick pay (SSP), measure GB-2020-11/586 (measures in United Kingdom), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/GB-2020-11_586.html
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.Article
12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.Article
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.