Uber has finally agreed to give tens of thousands of its drivers sick pay for the first time amid an employee rights row - but says it will cost workers £2 a week.

The taxi hailing firm is responding to critics by offering its workers various benefits including injury cover, which it claims is the first of its kind for self-employed drivers.

Active drivers who have completed at least 500 trips will be able to access the benefits - which also include jury service cover - but must pay £2 a week.

Uber: The taxi hailing firm is responding to critics by offering its workers various benefits including injury cover, which it claims is the first of its kind for self-employed drivers

Uber has drawn protests from traditional taxi drivers, including this one in London on April 6

Uber's growth in the so-called 'gig economy' has come with controversy, drawing protests by traditional taxi drivers, lawsuits from its drivers and regulatory bans.

But the firm says its partnership with the Association of Independent Professionals and the Self Employed (IPSE) will bring a string of benefits to its 40,000 drivers.

Those who join the scheme will have sickness and injury cover, free advice on personal finance issues and occupational accident cover.

Uber said it was the first time a UK operator had made such an offer for self-employed drivers.

Jo Bertram, regional general manager of Uber, said drivers have 'told us they want more security if something unexpected happens'

Jo Bertram, regional general manager of Uber, said: 'Drivers who make money through Uber tell us they love the freedom of being their own boss and choosing if, when and where they drive.

Uber's legal wrangles San Francisco-based Uber, which allows users to book and pay for a taxi via a smartphone app, has faced legal challenges over the way it treats its staff. The company is appealing a British tribunal ruling that it should treat drivers as employees and pay the minimum wage and holiday pay. It ruled in October that Uber was acting unlawfully by treating them as self-employed and not providing certain rights. The firm has also faced other rulings over issues such as the standard of English its drivers must meet and the licence fees it must pay, as regulators seek to rein in a firm that has shaken up the traditional taxi industry. Advertisement

'But drivers have also told us they want more security if something unexpected happens. That's why we're really pleased to offer drivers this package with IPSE so they have more support in case of illness or injury.'

Chris Bryce, chief executive of IPSE, said: 'IPSE is excited to partner with Uber and the thousands of self-employed drivers who use their app.

'In addition to gaining valuable illness and injury cover, drivers will benefit from being part of the UK's largest voice dedicated to supporting the self-employed community.

'It is part of IPSE's mission to represent all self-employed people and welcoming drivers who use Uber into the fold helps us achieve this.'

Maria Ludkin, the GMB union's legal director, said: 'It is gratifying to see that Uber has finally acknowledged they have the responsibility of an employer in relation to their drivers, who the courts have already ruled have worker status.

'Therefore it remains puzzling that they are continuing to appeal the employment tribunal judgment of October 2016, where this employment status was confirmed.'

An Uber spokesman told MailOnline today that the package is worth £8 a week, adding that the company is making a 'substantial contribution' to the cost.