DWP £100 per Week from April 2025: The UK government has unveiled a sweeping update to its Plan for Change, with a strong focus on boosting economic growth and improving the financial well-being of workers. Central to this plan is a landmark reform to Statutory Sick Pay (SSP), aiming to support low-income workers who face illness without forcing them to choose between their health and their paycheck. This initiative is part of a broader effort to make work pay, enhance workers’ rights, and address the UK’s long-standing productivity challenges.
A Fairer Statutory Sick Pay System
Beginning in April, workers on lower incomes who fall ill will be eligible to receive either 80% of their average weekly earnings or the standard SSP rate of £118.75, whichever is lower. This new structure replaces the existing rigid approach and ensures up to 1.3 million people could be better off by as much as £100 per week.
The reforms aim to create a fairer, more inclusive system that offers a safety net without compromising the incentive to return to work. By reducing the pressure to “soldier on” while unwell, the policy is expected to promote a healthier, more productive workforce—a key pillar in the government’s economic renewal strategy.
Tackling the Productivity Challenge
The UK’s productivity growth has lagged behind other major economies in recent years. According to the World Bank, productivity is essential: “Without improvements in productivity, there is no economic growth.”
This latest round of reforms is a response to that challenge. By giving workers the right to take time off without financial devastation, the government aims to reduce long-term absenteeism and support a sustainable return to work—enhancing efficiency and economic output in the process.
Making Work Pay: A Pro-Worker, Pro-Business Strategy
Deputy Prime Minister Angela Rayner MP described the update as a “pro-worker, pro-business” move, ensuring no one is forced to choose between health and wealth. The new SSP model reflects the government’s broader promise to “Make Work Pay,” especially for the lowest earners.
Work and Pensions Secretary Liz Kendall MP emphasized that “no one should have to choose between their health and earning a living”, and framed the changes as fair both to workers and businesses. The reforms ensure balance by providing vital support while keeping the cost manageable for employers.
Strengthening Workers’ Rights Beyond Sick Pay
The SSP update is part of a wider legislative package under the Employment Rights Bill, which also addresses:
| Area | Reform Highlights |
|---|---|
| Sick Pay Eligibility | Removal of the Lower Earnings Limit (£123/week) |
| Start Date of SSP | Right to sick pay from the first day of illness |
| Job Security | Measures to limit exploitative practices like fire and rehire |
| Zero-Hour Contracts | Tackling misuse and increasing predictability for workers |
| Umbrella Company Regulation | Addressing non-compliance in third-party employment structures |
The government received nearly 1,800 responses during its six-week consultation in late 2024. These responses—from businesses, unions, charities, and individuals—shaped the final decisions.
Broader Impacts and Legislative Action
While SSP is a devolved matter in Northern Ireland, the government plans to seek a Legislative Consent Motion to mirror the changes. The UK-wide intent is clear: create a modern, resilient workforce that contributes to long-term growth.
TUC General Secretary Paul Nowak hailed the changes as a “financial safety net” that prevents illness from becoming a crisis for families. He also stressed the importance of continuing to push for higher SSP rates in the future.
This reform marks a significant shift in how the UK approaches worker welfare and economic resilience. By aligning economic priorities with fairer employment standards, the government is taking steps to address productivity concerns and strengthen the foundations of its workforce.
FAQ
What is the new Statutory Sick Pay rate?
Under the new system, eligible workers will receive either 80% of their average weekly earnings or £118.75 per week—whichever is lower.
Who will benefit from these sick pay changes?
The reform mainly benefits low-income workers, including up to 1.3 million people, who will now have access to better financial support when they’re ill.
When will the new sick pay rules take effect?
The new sick pay structure will be implemented starting April 2025.
What happened to the Lower Earnings Limit?
The government has removed the Lower Earnings Limit of £123 per week, making more workers eligible for Statutory Sick Pay.
Will these reforms apply in Northern Ireland?
Statutory Sick Pay is devolved in Northern Ireland, but the UK government will seek a Legislative Consent Motion to apply the same changes there.
Thank you for your consideration Mr prime minister Keir Starmer, thank you for understanding the challenges i face daily with the son suffering with effective schizophrenia and at the same time having to have worked so hard and committed to my nursing career only to be dumped under the bus after sustained injuries while on duty by an aggressive violent patient without any compensation or a token of appreciation and just support me during the most difficult times I have enc with my son Ray, who up to this time has puzzled many doctors with this diagnosis because he graduated at Westminster University in cognitive impairment and neurological sciences and brain surgical career because he wanted to specialise in how to operate the brain as the doctor, yet the kings college accepted Ray’s space for almost three years because we were all hoping that one day he would recover from the severe mental illness and yet he never took any alcohol, illicit drugs nor bad group of wrongful peer pressure apart from helping people during his waiting periods to decide what he was meant to focus on. Ray got ill during the first week of his graduation. He worked at the hotel as waiter during his work experience including helping out at BEH NHS TRUST and now he is gone worse while I support him as his carer as well as a mother but I’ve gone worse with mental health illness due to intense pressure from looking after him. All my dreams went under the bridge as a mental health professional nurse. I loved my job and I was so committed for my patients, but today I have gone worse because of dealing with excruciating unbearable fibromylagia pains daily, this has left me paralysed socially with clinical depression and ptsd memory problems and anxiety. Am stuck at home not because of choices but because am scared to walk outside for fear of random falls due to the growth inside my brain. Sometimes i speak languages i never learnt from any school or college with random difficulties to formulate words. The worst part is that fear of not knowing how long i have to live before granting my son Ray for his respite holidays since 2018. And Ray is getting worse to understand the commands task when i help him here at home. Thank you for your kindness in considering my case, if it was of your compassionate heart I would have considered suicide to finish the trauma of coping with the daily needs of Ray as well as my needs. You can ask Anna Bashir who was my boss with Bob Ryan they will tell you how hard, dedicated and committed i was for the nursing career but i lurked adequate support during the Epping away of my career after injuries. I can hardly stand for ten minutes without having to stop bend or squat to soothe the back pains before having to limp sideways to walk. Thank you so much for your help via PIP thank you again Mr prime minister Keir Starmer.
Better something then nothing? If possible some increase would be still better, it means for 5 working days it is around 20/day! Well done
In the event of illnesd ,a good idea. I hope my StatevPension appears as normsl over Easter ,otherwise ill be stuck.