Occupational health: challenges and consultations

Following the Covid-19 pandemic, managing employee health and wellbeing has never been so important. But this can be challenging for some employers, especially when taking into account differing levels of knowledge, cost, and resources.

It is well known that the longer an absence lasts, the less likely an individual is to return to work. Prolonged absences lead to poorer health, and increasingly complex barriers to returning to work. This is where your Occupational Health (OH) or Rehabilitation provider would usually step in to provide support. 

However, only 45% of UK employees currently have access to OH services. In an effort to increase this percentage following the Spring Budget 2023, the Government launched two consultations. In this blog, we’ll take a look at these consultations, and the issues they are looking to tackle.

Sick absence remains a huge challenge for all 

Sickness absences challenge all different sized organisations, from the very large to very small, and can have a vast impact for both the employer and employee in many ways. 

When assessing your current approach to tackling return to work issues, it is important to remember that sickness absences, be they short or long term, are not just due to biological factors – they can also be influenced and perpetuated by psychological, societal and environmental factors too. In these cases, clinical intervention won’t be enough to ensure an efficient return to work.

Bringing people back to work can also be hampered by:

• a belief that someone cannot work unless fully recovered;
• a lack of motivation or even coping skills on the part of the employee;
• a perceived physical workplace barrier;
• unsuitable job roles; and
• stigma from colleagues about the absence or return to work. 

Musculoskeletal and mental health issues continue to be the two biggest drivers for economic inactivity in the UK, both of which are not concerns that can be dealt with by “having a few days off”, and can lead to long-term absences, presentism (where the employee is present at work physically, but not mentally) or even the possibility of ill-health related job losses if not treated properly. All of this is why you need to consider a multidisciplinary model when it comes to OH.

Government consultations on occupational health

To get a fuller picture of the issues facing UK employers, the Government is seeking views from all sized employers, from the large corporates right through to SMEs, across two consultations. These have been spurred on by increasing international evidence that good OH practices, enforced by law, can drive economic and social benefits. 

Consultation one – National health at work standard

This consultation is:

• Requesting views from both Employers and Occupational Health (OH) providers on setting a “national health at work standard” for employers to follow. 
• Looking to increase the coverage, access and possible funding options for employers to access support for managing sickness and illness related absences. 
• Examining the possibility of an accreditation for employers to achieve, ranking support from baseline to excellent, as well as an accreditation scheme for embedding a baseline of quality OH provision.

This could have several benefits and help employers of all sizes improve their knowledge on how to better manage health and disability in the workplace. Employers could also advertise that they are committed to maintaining a certain standard on workplace health and disability, which in turn could help them attract and retain talent in a competitive labour market.

The Government is also considering the idea of mirroring Auto Enrolment but for OH provision, by ensuring that Employers are legally required to provide a minimum for eligible default employees, with employees having the option to opt out if they wish. 

Consultation two – Tax incentives for occupational health

This consultation is looking at how the tax system can support employers to increase the provision of OH for employees. This will further incentivise employers to access the services over and above the current Benefit in Kind (BIK) exemption that is currently available in respect of certain medical benefits.  Currently, certain medical treatments funded by the employer – support for someone returning to work, annual health screenings or medical check-ups, etc. - are exempt from BIK tax. 

This consultation is considering the expansion of medical treatment and interventions by offering tax relief on them to help financially support the case of offering OH to all within the UK. However, things like private medical insurance and non-clinical treatments such as fitness classes or gym membership, would remain unchanged. 

What does good occupational health look like? 

Initial research from these consultations has found that some employers do not know what constitutes a good OH service. 

OH provisions can mean different things to different employers based on size, available resource, circumstances and needs. But key elements everyone should look to incorporate include: 

• early workplace support for employees with health conditions;
• workplace adjustments;
• clear concise advice, and 
• modifications. 

It could even extend to fulfil the employer’s compliance with health and safety by helping to maintain a healthy workforce. New starter health assessments are usually offered through OH too. OH can advise on preventing and removing health risks arising in the workplace and advising on ergonomic issues and workplace design.

Have your say

Regardless of the size of your organisation, we recommend that you have your say in these consultations, as all views will help shape the future landscape of OH services for our workforces.

The consultations close on Thursday 12 October 2023, and responses can be submitted here. Please keep in mind that both consultations should be considered together when submitting your response. 

Should you have any questions about the consultation, OH in particular or wider employee wellbeing, please contact Laura Matthews, Senior Wellbeing and Benefits Consultant.