DWP told 'failing' in-work benefit should rise by £67

A committee of MPs has told the Department for Work and Pensions (DWP) that a vital in-work benefit is 'failing' to act as a safety net for workers and should be increased by a third to £184 per week.

The current entitlement for statutory sick pay is £116.75 per week, up by £7 since 2023. But Sir Stephen Timms MP, chair of the Work and Pensions Committee, has called for the rate to rise, saying the scheme "is failing in its primary purpose to act as a safety net for workers who most need financial help during illness."

MPs are telling the DWP that this can be fixed by bringing the in-work benefit in line with another statutory payment that is paid at a higher rate. Statutory maternity pay is currently £184.03 per week, roughly £67 higher than the current rate of sick pay, and a fairer benchmark for sick pay, according to the committee.

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Sickness and absence at work have increased in the years following the Coronavirus pandemic, with a record-breaking 185.6 million days lost to sickness in 2022, with many of these workers being failed by the current level of sick pay. During the pandemic, the government worried increasing sick pay would put too much strain on employers, who pay the cost for their sick employees.

Workers can claim up to 28 weeks of sick pay from their employer each year, though the first three days of sickness are not included in their illness payouts. This only applies to employees earning at least £123 per week, something the committee also wanted to see changed to include all workers.

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “Statutory sick pay is failing in its primary purpose to act