Employers can no longer reclaim SSP from Government

From 6 April 2014, employers are no longer able to reclaim statutory sick pay (“SSP”) from the Government.

Historically, under the Percentage Threshold Scheme, employers were able to reclaim any SSP which exceeded 13% of it Class 1 national insurance contributions in any month.

Whilst employers cannot now reclaim SSP in respect of any periods of incapacity from 6 April 2014 onwards, they will be able to recover unclaimed SSP for previous years. SSP payments for periods of incapacity prior to 6 April 2014 can be reclaimed for a limited period of 2 years beginning on 6 April 2014.

It is estimated that the cut will save the Government £50 million per year, which it has announced will be put towards for a new “Health and Work Service” scheme. The scheme shall assist sick employees to return to work – the intention being to save employers money.

The new scheme is scheduled for April 2015.