UK fintech Wagestream has joined forces with French insurtech Wakam to introduce an advanced sick pay solution. Aimed at providing affordable sick pay cover to frontline workers, the initiative aims to address gaps in the UK’s sick pay system, which often leaves these workers financially vulnerable.
Enhanced Sick Pay, tailored to meet the unique needs of frontline employees, is accessible to over a million UK workers through employers partnering with Wagestream. This move comes as the latest ‘Low Pay Britain’ report highlighted the inadequacies of the UK’s statutory sick pay system, especially for the lowest-income workers who are ineligible for any statutory sick pay.
The current legislation has resulted in a concerning trend, where workers are compelled to continue working even when seriously ill due to the inability to afford sick leave. A recent study revealed that 83 per cent of low-income workers fear having to work through illness, with 28 per cent facing the prospect of sacrificing essentials like heating and food if unable to work for extended periods.
Under this new collaboration, Wagestream users can proactively set aside funds in the Wagestream app, tailored to their income levels. In the event of illness or accidents lasting beyond seven days, this fund will provide workers with up to half of their salary for a period of up to 90 days. Enhanced Sick Pay complements the existing features in the Wagestream app, which includes budgeting tools, personalised payment schedules, access to money coaches, savings options, and more.
The partnership
This partnership aligns with Wakam’s mission-driven approach to insurance, which emphasises inclusive insurance products, transparent terms and a commitment to social impact. This also complements Wagestream’s dedication to worker financial wellbeing.
Rob Moore, director of insurance at Wagestream, emphasised the mission to improve financial wellbeing for frontline workers: “Too many people come under financial stress if they lose their income for even just a week – but with this partnership, we’ll be able to tackle the problem and give employers a valuable new addition to their financial wellbeing toolkit in the process.”
While Olivier Jaillon, CEO & CPO of Wakam, shared similar sentiments, highlighting the shared values between the two companies: “We are really proud of this partnership with Wagestream, which allows us to further consolidate our presence in the UK. As a mission-driven company, we see our own values reflected in Wagestream’s strong commitment to society.”
