Below is the text of Mr Major’s written Parliamentary Answer on Sick Pay on 12th December 1986.
Mr. Clay Asked the Secretary of State for Social Services if he will estimate (a) the gross and (b) the net cost of paying statutory sick pay at 100 per cent. of earnings for (i) six weeks and (ii) three months.
Mr. Major The gross costs requested are estimated as (i) £2.5 billion and (ii) £2.75 billion. On each of these amounts employees would pay approximately £1 billion in income tax and national insurance contributions (NICs). However, an unknown proportion of this revenue would replace tax and NIC already payable on occupational sick pay schemes. It is therefore not possible to calculate the extra revenue with sufficient reliability to produce worthwhile estimates of net cost. The estimated cost of SSP in 1986-87 is £688 million.