HC Deb 12 November 1990 vol 180 cc65-6W
Mr. Blunkett

To ask the Secretary of State for Social Security if he will publish his latest estimates of the number of employees who will cease to qualify for the higher rate of statutory sick pay as a result of the recently announced changes to the scheme; and if he will show a breakdown of the figures for male and female employees.

Mrs. Gillian Shephard

About 3 million employees with earnings between £125 and £185 will no longer be eligible for the higher rate of statutory sick pay—SSP—if they fall sick on or after 6 April 1991. But the number of spells of sickness where the amount of SSP entitlement will be reduced will, of course, be much smaller; it is estimated to be about 600,000 out of an annual total of some 6 million.

It is estimated that about 60 per cent. of those affected will be women. For the majority of employees, occupational sick pay schemes will make up any difference in SSP entitlement. All employees already receiving the higher rate of SSP at 6 April 1991 will continue to receive that rate until their current period of entitlement ends, regardless of their earnings.

Those employees currently eligible for the lower rate of SSP, who are mainly in low-paid or part-time employment, are generally less likely to be in occupational sick pay schemes. Such employees will have their SSP fully uprated by £4.25 to £43.50 per week.

As my right hon. Friend the Secretary of State explained in his uprating statement, the flat rate element of statutory maternity pay—SMP—will no longer move in step with SSP. Instead, at this uprating, SMP will be increased by £5.25 to £44.50 per week, which is £1 above the RPI increase. This will benefit some 260,000 women. Similarly, a further 55,000 mothers to be will benefit from the addition of an extra £1 to the national insurance maternity allowance, taking it from £35.70 to £40.60 per week.

Mr. Blunkett

To ask the Secretary of State for Social Security if he will publish the latest estimates of(a) the number of employees covered by occupational sick pay schemes, expressed also as a percentage of the total work force and to show a breakdown of the figures for male and female employees and (b) the percentage of workers covered by such schemes but who are not eligible for sick pay due to exclusion clauses in operation with a breakdown of the figures for male and female employees.

Mrs. Gillian Shephard

Out of a total work force of some 22 million it is estimated that 20 million—91 per cent.—work for employers providing occupational sick pay cover. These comprise about 11 million men—90 per cent. of the male work force—and 9 million women—92 per cent. of the female work force. Detailed information about the number of employees who may be excluded from their employers' sick pay scheme is not available, but research shows that half the private sector schemes have no exclusion clauses whatsoever.