Industry urges radical action to tackle sickness absence

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Britain’s manufacturers are urging tax breaks to tackle the UK’s chronic sickness absence problem, which would encourage more employers to pay for private treatment for employees and ease the burden on an under pressure NHS.

The call was made today by EEF, the manufacturers’ organisation, on the back of the UK’s biggest business survey on sickness absence and, ahead of a Green Paper on workforce health to be published this summer. The survey, published with Jelf shows that long term absence is continuing to increase while, at the same time, the NHS is proving unable to support the working age population by providing timely and effective rehabilitation and medical treatment.

The survey shows a further fall in employers’ confidence in GPs to improve return to work rates with the effectiveness of the ‘fit note’ system continuing to deteriorate.

According to EEF, more fiscal incentives to encourage employers to provide private healthcare is required as part of efforts to tackle the UK’s productivity puzzle, believing that a fit and healthy workforce is an essential component of economic growth.

Terry Woolmer, head of health and safety policy at EEF, said: “Keeping people fit and healthy, whilst enabling a speedy return to work from absence is essential to economic growth and improvements in productivity. However, currently we have long term absence on the increase and an under pressure NHS which is struggling to deal with the issue. Given this situation is only going to get worse with an ageing population radical action is now required.”

He added: “Government must now use fiscal incentives to encourage employers to pay for private medical treatment and allow it to be offset in the same way as other business expenses. Not only would this help take the pressure off the NHS but it would allow a speedier return to work. This would be a win win for Government, the employee and employers.”

According to the survey 41% of companies say long term absence has increased in the last two years. This matches the increase reported in the 2015 survey which was the largest increase in five years. Of the workforce covered in the survey, 5% were off for a period of four weeks or more.

Two fifths of companies still rely exclusively on the NHS as the primary source of treatment to reduce absence with less than a fifth (18%) currently paying for non NHS treatment.

Almost a third (31%) would pay for medical treatment if there was a benefit to the company while almost three fifths (59%) would be most incentivised to pay for the cost of treatment or, workplace adjustment, by some form of employer allowable business expense.

However, 45% of employers are reporting the ‘fit note’ is failing to get employees back to work earlier (35% in 2010).

You can access the report here.