Recommendation 14

HM Government Deferred

The Government is working to improve and better integrate resources for businesses to help them support and manage health and disability in the workplace. This follows employer responses to the ‘Health is everyone’s business’ consultation which was published in July 2021. Some respondents highlighted the importance of insurance products such as Group Income Protection (GIP) and Individual Income Protection (IIP) as another way of supporting employees’ health and wellbeing. There are a range of policy types available. GIP insurance products offer one way for employers of all sizes to access a range of expert-led support should it be required, such as counselling services, Occupational Health or vocational rehabilitation, as well as the provision of income in the event of sickness absence. The Government agrees that, where policies are accompanied by high-quality services aimed at preventing ill health and offering support to help an employee return to work, insurance products are a valuable source of support, in addition to offering a financial benefit if an employee is unable to work due to illness or injury. Certain IIPs can provide similar benefits for the self- employed. While insurance products might not be appropriate for some employers, as noted in Improving Lives: The Future of Work, Health and Disability, the Government recognises the positive work across the industry to advance the offer for employers, particularly small and medium-sized enterprises, such as developments in the provision of digital services. We will also work with the industry to improve awareness among employers and self-employed people of the benefits protection policies can provide. More Broadly the government recognises the importance of Occupational Health (OH) and has launched a consultation (Occupational Health: Working Better) which aims to bring together employers, healthcare sector, and local communities by consulting on ways to increase OH coverage. We are working with industry representative organisations to understand the role of insurance products in increasing access to OH a part of the consultation process. Conclusion and Recommendation 15 There is inadequate access to occupational health services, especially for those working for small businesses. The rise in the number of people who are economically inactive due to long-term health conditions and high rates of economic inactivity among disabled people suggests more needs to be done to support health at work. We support the initiatives introduced in the Spring Budget around occupational health. However, DWP needs to outline a more detailed timeline about when these initiatives will take place. DWP should implement the research recommendations following the expansion of the SME subsidy pilot. We urge the Government to release such findings before the 2022–23 Session is prorogued. (Paragraph 104) Response On 20 July, the Government launched two consultations, Occupational Health: Working Better which is seeking views on proposals aimed at increasing employer use of Occupational Health (OH) Services and Tax Incentives for Occupational Health, which is aimed at employers, particularly SMEs (small to medium sized enterprises), OH providers, healthcare professionals and non-healthcare professionals. Access to Occupational Health services can play an important role in reducing economic inactivity by supporting disabled people and people with health conditions to stay and succeed in work. We will be analysing the results of both consultations after they close on 12 October 2023 and responses will inform potential policy proposals for increasing access to OH and improving employee health in the workplace. The Government announced in the Spring Budget that it will expand the forthcoming OH SME subsidy pilot to test a small-scale financial incentive and market navigation scheme which will support the uptake of OH services. The SME subsidy pilot is in design, with timelines to be confirmed. Findings will inform future recommendation on whether to roll the scheme out further.