The UK government’s proposed reforms to the health benefits system have been making headlines this week. The reforms are positioned as a drive to bolster employment support, to unlock work for sick and disabled people, as part of a wider reform package to fix the broken welfare system.
Shift toward prevention and early intervention
As reported live on the BBC’s website, Work and Pensions Secretary Liz Kendall said that the social security system is “holding our country back”. To counter this, she has announced changes which she says will save £5bn a year by the end of the decade.
Kendal has explained that this is a “decisive shift toward prevention and early interventions”, with four million people currently in work with limiting conditions, but 300,000 falling out of work every year.
The goal is to help people stay in work. As part of this, Kendal has pledged that the government will help more employers give more disabled people more opportunities.
The rising role of Occupational Health
Responding to the proposed reforms, Professor Neil Greenberg, President-elect of the Society of Occupational Medicine (SOM), commented:
“While we understand the need to encourage people off benefits and into employment, the UK Government and employers must do substantially more to support those with ill health to stay in work. This includes offering incentives for employers to provide occupational health (OH) services and investment in growing the OH workforce to meet rising demand.
“The importance of OH providers, the profession that exists to keep people healthy whilst they work, cannot be underestimated in delivering this.
The ROI of providing support through OH to keep Britain working
“According to the cross-sector Commission for Healthier Working Lives, providing more support for people in ill health to stay in work could save the UK government more than £1bn.
“The return on investment (ROI) of occupational health is well documented. Research shows that for every £1 invested in occupational health, businesses see a return of between £3 and £9 through reduced absenteeism, increased productivity, and lower staff turnover. Studies show that businesses investing in OH save on sickness-related costs but also create healthier, more engaged, and more resilient workforces.
“Effective OH provision should be central to any national strategy aimed at tackling workforce inactivity, with actions including explicit recognition of the benefits of OH in government workforce policies; incentives for employers to provide OH services; investment in growing the OH workforce to meet rising demand; integration of OH services within the NHS and use of fit notes, and employer education on the ROI of OH to drive wider adoption.
“Ignoring OH will only prolong the challenges that the nation currently faces in bringing people into the workforce. If we are truly serious about keeping Britain working, we must ensure that OH professionals are part of the solution, supporting and protecting individuals in employment.”
Employers expected to support the government’s push to “get Britain working”
With the government’s messaging already hinting that the private sector will be expected to support their push to “get Britain working”, David Williams, head of group risk, Towergate Employee Benefits believes businesses should be thinking carefully about the following questions:
- What money am I spending on my workforce, and
- What impact is that having on my trading performance
- How can I provide the right benefits at the right cost?
- How can I ensure I am boosting the performance of my business?
Williams adds: “Healthy, active employees don’t happen by chance. It happens through focusing on employees and seeing them as the valuable asset they are. It happens through giving employees every possible opportunity to stay healthy and contributing to the business”.
“It has never been more important for businesses and HR departments to understand the value of private sector solutions in reducing absence and keeping workers at work”.
Williams concludes: “The government’s overhaul of the welfare system doesn’t signify the end of benefits, it signifies the ongoing evolution of employee benefits working alongside state benefits, and now is the time for companies to ensure their benefits are fit for purpose.”
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