Nursery World - Costs: Part 4

Recent changes to the law on sick pay have taken many businesses by surprise. Karen Faux investigates

The familiar business burdens of VAT, business rates and, now, pensions, have been joined by a new kid on the block: statutory sick pay (SSP).

In the past two years, small and medium-sized businesses have been hit by a system which now requires them to foot the bill for staff sick leave, with some of them paying out tens of thousands of pounds for long-term sickness.

Last October, Liz Swatton, principal at Meadows Pre-School, London, told Nursery World the outlay ‘almost made us go bankrupt’. ‘We had a part-time member of staff who was off work for three-and-a-half months, from December to March last year. Not only did we have to pay her sick pay and holiday entitlement that accrued while she was absent, we also had to pay for staff cover. The final cost was over £7,500 plus National Insurance and tax,’ she said.

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