Mr. William O'BrienTo ask the Secretary of State for Social Security what responses he has received from small businesses to his proposals for them to pay sickness benefits claims; and if he will make a statement. [24319]
§ Mr. HealdAll employers have been responsible for administering statutory sick pay, SSP, since its introduction in 1983. The costs of SSP were transferred to employers in April 1994 to give them an incentive to tackle high sick absences. The cost to business was more than offset by the reduction in employers' national 599W insurance contributions. In addition, there were measures taken to protect small businesses faced with a large proportion of their work force off sick at any one time.
The Department has recently sought views from both sides of industry on a proposal which would allow employers exemption from operating the rules of the SSP scheme where, and for as long as, they pay wages or occupational sick pay at or above the SSP rate for any day of incapacity for work. Employers could choose whether to take advantage of the easement, and employees' rights would not be affected. Responses to the proposal, a number of which are from small businesses, are currently being examined.