Study indicates reforms to sick pay will benefit economy

A new study indicates that the sick pay reforms the government will be introducing are set to benefit the UK economy, bringing real advantages for businesses as well as employees.

WPI Economics analysed the planned changes on behalf of the TUC, and the results suggest that the economy will be boosted to the tune of over £2 billion. In terms of benefits to UK companies, WPI is forecasting that they will be in the region of £2.4 billion. Meanwhile costs for businesses associated with the changes are being estimated at £425 million. If these figures are true, they will come as a big relief to businesses around the country.

Under the terms of the new regulations, employees will be entitled to statutory sick pay starting on the first day that they are ill. Those on a low income will be able to claim 80% of their wages per week. The changes become law in April 2026, and many business owners are worried about increased costs.

Now this report suggests that will not be a problem though. WPI is stating that sickness absence should be reduced and that employees should make faster recoveries. It is also arguing that employee turnover due to ill health should fall.

When it comes to minimising costs for businesses, successful implementation is crucial. That is where project management HR services from outside can be useful, especially for smaller firms that do not have internal HR teams.

The reforms are predicted to help the economy by increasing the revenues from taxation.