HC Deb 02 November 1988 vol 139 cc645-6W
Mr. Evennett

To ask the Secretary of State for Social Security what is the latest information he has of the coverage and characteristics of occupational sick pay schemes.

Mr. Scott

The Department has today published a report commissioned from IFF Research Ltd. on occupational sick pay provision by employers.

The report, based on a survey of both private and public sector establishments carried out in February 1988, contains detailed and valuable information about the scope and nature of sick pay cover. It shows significant growth in coverage since the last official survey in 1974. It also reports on employers attitudes to sick pay schemes and to statutory sick pay (SSP).

The survey found that 91 per cent. of the work force are now covered by an occupational sick pay (OSP) scheme. This compares with 80 per cent. in 1974. The increase has come particularly amongst manual grades, where 88 per cent. have OSP cover compared to less than two thirds in 1974. Coverage between men and women is 90 and 92 per cent. respectively.

Employees with OSP cover work for 56 per cent. of all employers. The remaining 44 per cent. of employers who do not provide OSP are predominantly small or very small employers.

The majority of schemes (83 per cent. private and 74 per cent. public sector) top up SSP to full basic pay. Payments for short-term cover are usually made either for a fixed period of up to six months or vary depending on the length of service.

The report shows that many employers now also extend sick pay cover well after SSP ends. A total 58 per cent. of all employees work for employers who provide some form of long-term sick pay. Typically such schemes have either a time limit or continue until retirement age. A number of schemes operate early retirement arrangements. The level of payment is either a percentage of salary or a flat rate payment.

I have arranged for copies of the report, which is entitled "Occupational Sick Pay Schemes", to be placed in the Library. It is also available for purchase from the Department's offices at Canons Park, Stanmore. An article about the report appears in the current issue of the Employment Gazette.