On 6 April 2014 the Percentage Threshold Scheme (PTS) that allowed employers to reclaim Statutory Sick Pay (SSP) was abolished.

Previously employers could recover SSP costs in respect of their employees’ statutory sick pay entitlement in the event that the total SSP paid was more than 13% of the Class 1 NIC due for the month in question.

The rate of SSP was also increased on 6 April 2014 from £86.70 to £87.55.

This change has been introduced to encourage employers to actively manage sickness absence, in order to reduce the potential cost to their business. It is understood that the money the Government will save as a consequence of the removal of the PTS will be diverted to the new ‘Health and Work Service’, due to be introduced in 2015, which is aimed at assisting employers and employees in achieving an earlier return to work.