Warning that a record 2.83 million people are economically inactive due to long-term health issues, Work Foundation’s head of research Alice Martin said: “The current low rate of sick pay compels some people to work while they are unwell to make ends meet.

“This risks compounding existing health conditions and can lead to people dropping out of the labour market altogether.”

The think tank said SSP should be reformed by removing the lower earnings limit and enabling SSP to start on the first day of illness, and called for a roadmap for increasing the rate to 60 per cent of usual wages or the equivalent of the Real Living Wage.