SSP no longer reclaimable from Government

Date: 23/04/14

SSP no longer reclaimable from Government

Businesses are reminded that the ability to reclaim Statutory Sick Pay (SSP) in certain circumstances under the Percentage Threshold Scheme (PTS) has been abolished.

The Government withdrew the scheme from 6th April in order to establish a new Health and Work Service.

Previously, employers could use PTS to reclaim SSP, provided the SSP paid within a month exceeded 13 per cent of an employer’s Class 1 National Insurance Contributions for that month.

Businesses have been able to reclaim SSP in these circumstances since 1995, however an independent report carried out in November 2012 recommended the scheme be abolished as it cost £50 million a year, and rewarded employers with high staff absence, thereby giving no incentive to encourage long term sick employees to return to work.

As of 6th April, it is no longer possible for employers to recover Statutory Sick Pay (SSP) from the Government.  This will be especially costly for small businesses where just a single person off sick might have triggered the reclaim in the past.

However employers will, for a limited period, be able to recover unpaid SSP for previous years, and if they believe this to be the case they should seek advice from an accountant.

The new Health and Work service will offer voluntary medical assessments and treatment plans for employees and is intended to deliver substantial savings to employers by reducing sick days.

However as the new scheme is not due to start until 2015, many employers will have to bear the costs in the meantime. As such organisations should work closely with their financial adviser to best deal with this unexpected cost burden.

For further information, please contact Lorraine Wilkinson at the office.


Lorraine Wilkinson

Author: Lorraine Wilkinson

​Lorraine joined Scott & Wilkinson in 2001 bringing with her over 20 years payroll experience. As payroll manager, she oversees the smooth running of the firms payroll bureau which includes all aspects of day to day payroll. Lorraine is...

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