SICK PAY – and being self-employed

1. SICK PAY – and being self-employed Mark Wilshere HDR 15/2/11

2. Statutory Sick Pay (SSP) – payed by employer • Employment and support allowance – payed by department of work and pensions

3. SSP • Criteria; • 4 days off consecutively or 1/7 if had SSP in last 8/52 • Ave earnings > £97/wk pre tax • Up to 28 wks in one sickness episode (does not have to be continuous) • After 28wks – can possibly transfer to employment and support allowance • Stops if job is terminated • If more than one job, can possibly get from each employer

4. SSP • Exemptions; • Unemployed • Self-employed • Involved in trade dispute at work • In legal custody • Had 28wks of SSP, gone back to work but sick again within 8wks • Claim employment and support allowance within 8wks before going sick • Are getting maternity allowance or statutory maternity pay (rate currently £79.15/wk – reviewed every April)

5. Employment and Support Allowance Replaces incapacity benefit and income support that is paid because of an illness or disability for new claimants from 27th October 2008 Offers personalised support and financial help so you can work if able to Access to specially trained PA New medical assessment called ‘Work Capacity Assessment’ which assess’ what you can do rather than not, and identifies health related support needed

6. Employment and Support Allowance There are 2 phases; Assessment phase • up to 13/52 where decision made on capability to work via work capability assessment • Between weeks 9 and 13 will have work focused interview Main phase • From week 14 onwards • 2 groups; • Work related activity group Work focused interview with PA Support to help for suitable work Basic rate and work related activity component • Support group For severe casesso no work (but can do voluntary work) Basic rate and support component

7. Who can get Employment and Support Allowance • your Statutory Sick Pay has ended, or you cannot get it • you are self employed or unemployed • you have been getting Statutory Maternity Pay (SMP) and have not gone back to work for your employer because you have an illness or disability which affects your ability to work • you are under State Pension age  You must also either have one of following: • have had an illness or disability which affects your ability to work for at least 4/7 consecutive days • be unable to work for 2+/7 consecutive days • be getting special medical treatment • If you are aged between 16 and 20 (or under 25 if you were in education or training at least three months immediately before turning 20), you must: • have been too ill to work because of an illness or disability for at least 28 weeks (this limitation only applies to contribution-based Employment and Support Allowance, but you may still be eligible for income-based Employment and Support Allowance) • have been too ill to work before you turned 20 (or 25 if you were in education or training at least three months immediately before turning 20)

8. Allowance • Contribution based – if paid enough NI • Income based –not enough NI contributions, not enough money coming in + less than £16,000 savings and if have a partner, they work < 24hrs/wk

9. Rates • Assessment phase; • <25yr and single up to £51.85 • >25 and single up to £65.45 • Main phase; • Single in work related group £91.40 • Single in support group £96.85 Can only get extra money for partner IF get income related allowance Pension is taken into account and deducted Income related is non-taxable but contribution based is taxable

10. Other options • Practice protection – for the business e.g. locum insurance • Income protection • Critical illness • Mortgage protection • Life insurance