Newsflash: Statutory sick pay – goodbye to reclaims

From 6 April 2014, employers can no longer reclaim any SSP from the Government.

This brings an end to the previous regime which allowed employers to reclaim any amount of SSP which exceeded 13% of its monthly national insurance contributions.  If employers do have any outstanding SSP paid for sickness absences before the end of the 2013/14 tax year then you have until the end of 5 April 2016 to recover this.

The reason given by the Government for the abolition is because an independent review of sickness absence showed that SSP rebates have not encouraged employers to manage sickness absence in the workplace.  The Government has said that it will reinvest the money saved (estimated at £50m a year) in the new health and work service due to start in 2015 which aims to help employees who are off sick return to work more quickly.  For more information on this service see our January 2013 Newsletter: Tackling Sickness Absence.