Sick Pay for the Self-Employed in the UK: What You Can Claim and How

Why there is no Statutory Sick Pay for the self-employed

When an employee falls ill, their employer usually pays Statutory Sick Pay (SSP). As a sole trader, you have no employer, so SSP does not apply to you. If illness or a health condition limits how much you can work, the main support available is New Style Employment and Support Allowance (ESA).

New Style ESA is a contributory benefit. This means your entitlement depends on your National Insurance record, not on your income or savings. It is not means-tested — your partner's earnings and any money in the bank have no effect on whether you qualify.

Who can claim ESA as a self-employed person

To qualify, you generally need to meet three sets of conditions.

• Age and health: You must be at least 16, under State Pension age, and have an illness or disability that limits your capability for work.

• National Insurance record: You must have paid, or been treated as having paid, enough Class 2 National Insurance contributions over the last two complete tax years.

• Not receiving SSP: You cannot get ESA at the same time as Statutory Sick Pay, though employees can apply up to three months before SSP ends.

For the self-employed, the National Insurance test is the key one. In recent years, mandatory Class 2 contributions were abolished for most people whose profits sit above the Small Profits Threshold — a level the government sets each year. If your profits are above it, you are treated as having paid Class 2 contributions even though they are no longer charged as a separate amount. If your profits are below it, you can pay voluntary Class 2 contributions at a low flat weekly rate to keep your entitlement to ESA and other contributory benefits.

How much you can get

ESA is paid in two stages. While your claim is assessed — usually for up to 13 weeks — you receive the assessment rate. After a Work Capability Assessment, you are placed in one of two groups, which sets the longer-term amount:

• the work-related activity group, if you are expected to be able to return to work in future, and

• the support group, if your condition means returning to work is not expected.

The current weekly rates are set out below. The government reviews these each April, so treat them as a guide and check the latest figures before relying on them:

• Assessment phase, under 25: up to £72.90

• Assessment phase, 25 or over: up to £92.05

• Work-related activity group: up to £92.05

• Support group: up to £140.55

If you receive a private or occupational pension above a set weekly amount, half of the excess is deducted from your ESA.

How to claim ESA

You normally apply for New Style ESA online through GOV.UK. If you cannot apply online, you can call the Jobcentre Plus new claims helpline.

Before you start, have the following ready:

• your National Insurance number

• your bank or building society account number and sort code

• your doctor's name, address and telephone number

• a fit note (sometimes called a sick note) if you have been unable to work for more than 7 days in a row

After you apply, the Department for Work and Pensions (DWP) contacts you within 10 working days. You will be asked to attend an appointment with a work coach and agree a “Claimant Commitment”. If your claim is refused, you can ask for the decision to be reconsidered.

Can you work while claiming ESA?

Yes, but only within limits. The permitted work rules let you do a small amount of paid work without losing your ESA, provided you stay within the set hours and earnings caps. This can be a useful way to ease back into self-employment after illness without jeopardising your support.