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The below Parliamentary question was asked by Toby Perkins on 2014-03-13.

To ask the Secretary of State for Work and Pensions, what assessment he has made of the effect on the ability of small businesses to manage sickness absence of abolishing the Percentage Threshold Scheme for recovering statutory sick pay.

Mike Penning

The SSP Percentage Threshold Scheme compensates employers with high levels of sickness absence but an independent review of sickness absence[1] found it does nothing to tackle the causes of absence. As a result, the Government accepted a recommendation in the Review to abolish the Percentage Threshold Scheme. The Government also accepted a recommendation to establish a Service (now known as the Health and Work Service) to offer specialist occupational health assessment and advice to employers, employees and GPs. The Service is designed to reduce the costs of sickness absence for employers by addressing the obstacles preventing a return to work, and supporting employees back to work as quickly as appropriate. It will be funded from the savings made from the abolition of the PTS and will provide a more proactive way to manage sickness absence.

Small businesses are least likely to have access to occupational health services, and will benefit from having access to occupational health assessments and advice through the HWS.

[1] Black, C. and Frost, D (2011) Health at work – and independent review of sickness absence.

The below Parliamentary question was asked by Toby Perkins on 2014-03-13.

To ask the Secretary of State for Work and Pensions, what his policy is on alternative models of compensating small businesses for sickness absence after the abolition of the percentage threshold scheme for recovering statutory sick pay.

Mike Penning

The Government believes that reinvesting savings from the abolition of the Percentage Threshold Scheme to establish the Health and Work Service is the most effective means of targeting public funds to tackle sickness absence. The Health and Work Service will reduce the length of sickness absence and offers a more proactive approach to sickness absence management. Small businesses are least likely to have access to occupational health services, and will benefit from having access to occupational health assessments and advice through the Health and Work Service.

We have considered an alternative approach along the lines of restricting access to a reimbursement scheme to employers with fewer than five employees. However, this was discounted because it resulted in additional burdens on employers and additional Statutory Sick Pay reimbursement costs for the state.

The below Parliamentary question was asked by Toby Perkins on 2014-03-13.

To ask the Secretary of State for Work and Pensions, what assessment he has made of the additional cost to small businesses of abolishing the percentage threshold scheme for recovering statutory sick pay.

Mike Penning

The Department for Work and Pensions has published an impact assessment outlining the abolition of the Percentage Threshold Scheme (PTS) and introduction of the new provision of health assessments and occupational health advice available at the following link:

<http://www.legislation.gov.uk/ukdsi/2014/9780111108468/impacts>

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