Two million low-paid workers may be entitled to statutory sick pay for the first time, under new proposals.

The government is consulting on plans which it hopes will encourage more people with disabilities and long-term conditions back into work, as reported by The Guardian.

About 100,000 people every year stop working completely following sickness absence, according to the Department for Work and Pensions and Department of Health and Social Care. Nearly half (44%) of workers who are off work due to ill health for a year do not return to the workplace.

Proposals include funding for small businesses in the form of a sick pay rebate, so they can help people with disabilities and long-term conditions return to work when they are ready.

Work and pensions secretary Amber Rudd said work is good for both physical and mental health and she wants the government to work closely with employers to help prevent the loss of talent when employees leave the workplace due to ill health.

Long-term chronic conditions, from type 2 diabetes to heart problems, are on the rise in the UK and there are now 12.7 million people of working age with a long-term health condition.

The lowest paid workers in Britain are not currently eligible for sickness benefit. Statutory sickness pay is only for people earning more than £118 a week. Two million employees, mainly part-time workers, earn less than that.

Proposals for consultation will seek views on the level and duration of statutory sick pay. The Department of Work and Pensions has warned that too high a rate of SSP could be a disincentive to people returning to work. It said any changes need to strike a balance between supporting workers when they are off work, while also providing an incentive for them to go back to work.

The proposals will include statutory guidance to employers to take "early, proportionate and reasonable steps to support an employee to return to work". Employees will have a right to request modifications to the workplace to take account of their health needs. They will also be encouraged to raise issues, and employers will be encouraged to accommodate them where possible.

Kay Hamblin, director of Cheltenham-based Eight Legal Ltd, said: "While this would clearly be good news for many low-paid workers, we are concerned about the potential additional burden it may place on small businesses.

"Employers haven't been able to reclaim anything for the SSP they pay out since 2014, so it seems likely that the extra cost will fall on them.

"Most employers would welcome changes that would help their employees, such as a phased return to work, provided that the procedure is simple and fair.

"It's encouraging that the consultation mentions a possible rebate for small businesses that facilitate this. We'll be following the consultation with interest."