The COVID-19 SSP Rebate Scheme (2)

On 21 December 2021, the Chancellor of the Exchequer announced the return of the Statutory Sick Pay Rebate scheme (SSPRS) as part of ￡1 billion funding to support businesses most impacted by the Omicron across the United Kingdom (UK).?

This is a scheme whereby eligible employers can reclaim up to two weeks’ worth of Statutory Sick Pay (SSP) where the absence is Covid-19-related.

Note that the word ‘absence’ does not mean that the employee has to actually be sick.? Various SSP (Coronavirus Amendment) Regulations have added to the list of people that are deemed to be incapable of working, i.e. absent.? So, eligibility to SSP extends to absences where it is not through actual sickness but also through self-isolation.

Note that ‘The Statutory Sick Pay (Coronavirus) (Funding of Employers’ Liabilities) (Closure) Regulations and the Statutory Sick Pay (Coronavirus) (Funding of Employers’ Liabilities) (Northern Ireland) (Closure) Regulations 2021’ closed the first scheme effective 30 September 2021.

The administration period to 31 December 2021 is still effective – i.e. the time by which employers have to make claims under this scheme.

The SSPRS (1) was opened and closed with legislation made under the UK-wide Coronavirus Act 2020.? Therefore, the legislation applied UK-wide.?

I expect that opening legislation will also be made under this Act, however, do not expect it until mid-January 2022.? The UK Parliament is in recess at the moment, though claims will be backdated to 21 December 2021 when it is made.

Note that the 2020 Act is due to expire itself at midnight on 24 March 2022, taking with it any secondary legislation made under it.??

The temporary scheme is re-introduced to refund eligible employers up to 14 days SSP.? This is 14 days per employee.

It is important to say that this is a totally new, yet similar, SSPRS that is unrelated to the last scheme that closed in September 2021.? This means that any employer who has used SSPRS (1) should not consider that any SSP days claimed count towards SSPRS (2).?

The maximum days claim has been reset to zero.

SSPRS (2) applies for periods of Covid-related absence from 21 December 2021 onwards.??Remember that for SSP eligibility, the employee has to meet the usual criteria such as forming the Period of Incapacity for Work (PIW), giving the correct notice and earning at or above the weekly Lower Earnings Limit.

Whether or not an employer can claim under SSPRS (2) all comes down to employer eligibility.? Whilst we do not have the legislation, the HMRC factsheet says that this means:

• The employer must be UK-based.? Whilst no details are given and ‘more guidance will be published shortly’, the word employer is likely to mean all connected employers
• The PAYE scheme must have been created and started on or before 30 November 2021.? ‘Started’ means that HMRC must have received at least one valid Real Time Information submission containing employees on or before this date
• There were less than 250 employees on 30 November 2021 across all PAYE schemes for the employer, and
• The employer must have already paid SSP to the absent employee

As above, we do not have the legislation, however, the previous scheme (SSPRS 1) included a complicated provision about the employer not being ‘in difficulty’ and this is likely to be 31 December 2021.

So, we are talking about the smaller employer and the valuable 2 weeks SSP payment that otherwise would have been an employer cost.? Yet, this employer must not have been ‘in difficulty’.?

Employers will be able to make a claim from mid-January 2022 onwards.

Like SSPRS (1), the employer is required to keep records for 3 years after the date they receive the payment for their claim for compliance purposes:

• The dates the employee was off sick
• Which of those dates were qualifying days
• The reason they said they were off work due to Covid-19, and
• The employee’s National Insurance number

‘The Statutory Sick Pay (Coronavirus) (Suspension of Waiting Days and General Amendment) Regulations 2020’ and Northern Ireland equivalent prescribed that employees in receipt of COVID SSP can receive this from day 1 without having to serve the usual 3 Waiting Days.? This does not apply in non-COVID cases such as a broken arm where Waiting Days still apply.

This suspension power continues and was not ended in September 2021 when SSPRS (1) closed.?

However, be aware that, as we stand, these powers will automatically end when the 2020 Act itself expires at midnight on 24 March 2022.

This is a timely and welcome re-introduction.? Like SSPRS (1), SSPRS (2) will be used by many employers together with the suspension of Waiting Days powers.

However, do look out for the legislation in January 2022 and the fact that this will be made under the UK-wide Coronavirus Act 2020 which is due to expire at midnight on 24 March 2022.