HC Deb 19 November 1984 vol 68 c69W
Mr. Sean Hughes

asked the Secretary of State for Social Services what will be the net effect on expenditure for sickness provision, through the statutory sick pay scheme and sickness benefit, resulting from the decision to extend coverage of statutory sick pay by a further 20 weeks, both in the first year of the change and in a full year.

Mr. Newton

We estimate that there will be a net increase in statutory provision for sickness of about £90 million in the first full year at average 1984–85 benefit rates. This figure does not take account of extra taxation and employee's national insurance contributions payable on statutory sick pay. The effect will be reduced in the year April 1986 to April 1987 by transitional effects following the extension of statutory sick pay.

Mr. Sean Hughes

asked the Secretary of State for Social Services if he will show the amount of sickness provision currently provided, both through sickness benefit and statutory sick pay, for a person who falls sick for 28 weeks in one 12-month period, who has satisfied the National Insurance contribution conditions, whose normal earnings are £60 gross per week and who has a dependent spouse; and if he will show the amount of combined sick pay and benefit they will receive, at equivalent prices, following the extension of statutory sick pay for 28 weeks.

Mr. Newton

At present such a person would first receive eight weeks of statutory sick pay—SSP—from his employer at £35.45 per week; he would then transfer to state sickness benefit at £44.05 per week—from the week commencing 26 November 1984 — for the remainder of the period. When SSP liability is extended to 28 weeks there will be entitlement to SSP for the whole period. There is no entitlement to Department of Health and Social Security sickness benefit for any period for which there is entitlement to SSP, but if the employer has an occupational sick pay scheme the employee might be entitled to additional payments in that respect.

In the circumstances the hon. Member postulates, which in practice we think are likely to be rare, the claimant would of course be eligible — unless he had capital over £3,000—for supplementary benefit—subject to the normal rules—to increase his income to £45.55 a week—at the rate of benefit from 26 November 1984—plus help to cover his housing costs.