Businesses buy up private healthcare to get sick employees back to work

A quarter of UK businesses are turning to private medical insurance to get employees back to work, new figures show.

The new study from the public policy research charity, Future Health, highlights the impact of long NHS waiting lists and the nation's poor health, with three in ten businesses seeing an increase in sickness rates in the last year.

It found one in four UK businesses plan to introduce private medical insurance to get employees back to work quicker due to the long NHS waiting list - currently standing at 7.6 million.

It also showed over half of businesses are concerned about current NHS waiting times and the significant impact of increasing staff sickness rates on productivity.

Future Health estimates there are currently an estimated 3.7m working-age people in employment suffering work-limiting health conditions, an increase of over 1.4m over the past decade. A further 2.7m people are out of work entirely.

It says business costs have risen as a result of work-limiting conditions, because employees are not performing to the best of their ability due to illness or mental health condition. The report estimates this 'healthy pay gap' has reduced earnings by 15 percent.

Lower productivity, resulting from poor health is estimated to cost the UK £150bn per year, the Future Health research shows.

It is calling for employers to better support the health of workers by ensuring there are clear and fair policies in place, and appropriate training for managers to help staff.

Former UK Government Special Adviser and Programme Director at Future Health, Richard Slogget said: "These findings show that the poor health of the nation and long wait lists for NHS treatment are a handbrake on economic growth

"The Government now needs to respond with a clear offer to businesses that incentivises employee health related investment, supports small and medium sized businesses in expanding their health offerings to staff along with a necessary expansion of the occupational health workforce. Growth will continue to be anaemic unless we get Britain's workforce healthier."

This week, Dr Sean Phillips, Head of Health and Social Care at Policy Exchange gave oral evidence to the House of Lords Economic Affairs Committee to inform an inquiry into the relationship between the welfare system and long-term sickness in Great Britain.

Giving evidence to the House of Lords Economic Affairs Committee this week, Dr Sean Phillips, Head of Health and Social Care at Policy Exchange, called for a welfare assessment overhaul. He said: "The growth in long-term ill-health and welfare spending for those of working-age is unsustainable. The Lords Economic Affairs Committee are to be commended for grappling with a set of issues with such significant implications for the nation's health, finances - and values."

"In giving evidence to the Committee this week, Policy Exchange made the case for overhauling health assessments. The first step in this process, the 'fit note', isn't fit for purpose. It must become a more dynamic tool, directing those with mental health issues or joint pain to 'Further' or 'Ongoing' assessment to improve return to work rates.

"Improved data on the health conditions benefit claimants are managing is needed, as is a cohort-based approach, where younger claimants with mental and behavioural conditions are more routinely reassessed and far fewer assessments exclusively paper-based or over the phone alone."

Liz Kendall, the work and pensions secretary, blamed the Conservative government on absenteeism in a speech earlier this year.

Describing her task as "one of the biggest challenges the country faces", she said that she would bring in major reforms to a system that was failing too many of the near record numbers now out of work due to long-term sickness.

She said: "We've never seen more people written off. The last parliament was the worst for economic inactivity on record. It is for us to put this right. But we will need big reforms and big changes. I know people worry about this, but I want to say, we are on your side. We are not going to write you off and blame you. We take our responsibilities seriously. We're going to bust a gut to give you the support you need to build a better life."

A government spokesperson said: "We have seen record numbers of people excluded from the workforce citing long-term sickness and economic inactivity.

"Healthy businesses depend on a healthy workforce, and a strong economy depends on a strong NHS. By cutting waiting lists, improving access and taking bold action on public health, we can get Britain back to health and back to work.

"We have made a strong start, launching our £64 million Work Well pilot which will connect 59,000 people to local support services including physiotherapy and counselling."