The annual Low Pay Britain Report - now in its 13th edition - continues to shed light on the state of low-paid work in the UK. In its latest iteration, the report has also become a part of the Economy 2030 Inquiry, aiming to formulate an economic strategy to address the issues of high inequality and sluggish growth. The report emphasizes the importance of prioritising good work and presents a policy agenda for achieving that goal.
While the challenges of low pay are well-known, the report brings to light lesser-known difficulties faced by those in low-paid jobs. One significant disparity is the lack of flexibility for dealing with emergencies at home. A survey of 2,000 private-sector employees revealed that 56 per cent of those earning less than £20,000 per year would not be paid if they missed work due to a family emergency. This stands in stark contrast to the 12 per cent of workers earning above £60,000 who would face the same situation.
Additionally, the report highlights the precarious situation of workers earning less than £123 per week, who are ineligible for any statutory sick pay. A significant proportion of low-income female workers under 45 also face challenges when it comes to maternity leave, with two-thirds expecting only statutory maternity pay or no pay at all.
The report identifies security-related concerns as areas in need of reform. It calls for an improved statutory sick pay system and safeguards for workers with varying hours and pay. The report argues that these reforms should be viewed as integral components of a broader economic strategy. While the report acknowledges the intricacies of each policy area, it also underscores the importance of understanding how labour standards influence the overall economy.
New research conducted by Wagestream - experts in financial well-being - further underscores the urgent need for reform in the sick pay system. The survey of 2,000 frontline workers reveals alarming trends. A staggering 83 per cent of frontline workers fear they would need to work through illness due to the current legislation's inability to provide sufficient sick pay. Even a two-week sick leave would financially strain 91 per cent of these workers, with 28 per cent facing the prospect of going without heating or food.
The research also stresses the mental health toll of the sick pay crisis. For 86 per cent of essential workers, an absence of two weeks or more would lead to feelings of anxiety or depression. A significant majority (92 per cent) of these workers express concerns about burnout if they are forced to work through illness.
The dire situation has prompted 84 per cent of UK frontline workers to consider company sick pay support as one of the most important benefits an employer can offer.
The latest Low Pay BritainReport, along with supporting research, underscores the urgent need for reform in the UK's sick pay system. The plight of low and variable income households facing a lack of financial security during illness highlights the dire need for change. As the Economy 2030 Inquiry seeks an economic strategy to address inequality and low growth, prioritising good work, including fair sick pay, should remain at the forefront of discussions to create a more equitable and sustainable future for all.
