IOSH call for tax breaks heard by sickness absence review

22 November 2011

An independent review into long-term sickness absence has recognised IOSH’s call to introduce tax break incentives for employers to provide therapy and rehabilitation for staff.

Aimed at reducing the cost of sickness to employers, tax-payers and the economy, the report from health and business experts Dame Carol Black and David Frost was presented to Government yesterday (Monday 21 November).

Responding to the news, IOSH said it was pleased the review had taken on one of its key suggestions, and it urged the Government to support the tax relief initiative when it responds to the report in 2012.

Each year around 11 million employees take sick leave, with 300,000 going on to claim health-related benefits, the report reveals. It adds that sickness absence is costing the taxpayer £13bn a year and that the country is missing out on £15bn in economic output.

From its findings, the review recommends a new Independent Assessment Service (IAS) that employers and GPs can refer long-term sickness absence cases to, and adds that employers could save around £100million a year through reduced sick pay bills.

IOSH head of policy and public affairs Richard Jones said: “We’re very pleased to see that Dame Carol Black has heard our concerns, and our call for tax breaks for employers has been included.

“Good, well-managed work is good for health and wellbeing and those wanting to return to work after illness should be given all the help and support they need. After all, prolonged periods of absence can lead to deterioration of mental and physical health.

“We’d welcome support for family doctors, employers and workers in overcoming any barriers in returning to work. We’re pleased our call has been heard on tax breaks and we’d urge the Government to support this, along with the proposal for access to independent expert panels.”
 

Among its other recommendations is a state-introduced job brokering service for employees on long-term sickness absence who cannot return to their current employer, saving up to £300m a year from the benefits bill.

Speaking on the release of the review, British Chamber of Commerce former Director General David Frost said: "Evidence clearly shows that the longer you are out of work the harder it becomes to get back in. But in many cases sickness absence is due to health conditions that are nonetheless compatible with work – and can often be improved by work.”

Dame Carol Black, National Director for Health and Work, said that while sickness absence from work could be unavoidable, when it was unduly prolonged it was both wasteful and damaging.

She added: “We believe we have presented an urgent and compelling case to change the current system so that it unashamedly promotes work for those that can.

"If implemented these recommendations will ensure many more people with health conditions are able to enjoy the benefit of work; far fewer will needlessly lose work and fall into long-term benefit dependency.”

IOSH has also long-advocated better occupational health awareness training for family doctors and has developed a continuing professional development (CPD) course for members covering return to work issues and multidisciplinary working.