Employers fear sickness benefits review

Employers are increasingly concerned about the potential impact of the government’s review of sickness benefits, according to new research.

The study from Group Risk Development (Grid) shows that 38% of employers questioned are ill-prepared to accommodate the government's review of those on Incapacity Benefit (IB).

And almost one in five (18%) thought that this would create some problems for their business, having regarded those on the benefit as effectively retired or unable to be brought back into work.

A further one in five (20%) had not even considered the matter, while only 8% said that they would be able to accommodate a return to work for an employee whose Incapacity Benefit is withdrawn.

The latest Department for Work and Pensions figures show that three quarters of those currently applying for the replacement Employment and Support Allowance (ESA) are not qualifying for the benefit.

With the 2.1 million IB claimants being progressively re-assessed for ESA it is expected to lead to a major influx of workers back into the jobs market, resulting in employers facing a wider applicant pool, with a greater number of people who need extra assistance getting started with work.

As the trade organisation for the group risk industry notes, the expectation is that a significant number of those whose Incapacity Benefit is reviewed will be found fit for work or able to take up work with a little help - a big ask if companies are unprepared to make this change.

Katharine Moxham, spokesperson for Grid, explained that as an industry heavily involved in occupational rehabilitation, it fully appreciated the importance of financial motivation in getting someone back into the workplace.

"Viewed as part of the framework of welfare reform, the review of those on IB is an important step towards creating a system that fosters greater personal responsibility and more positive behaviours among employees," she said.

"But effecting a change of this magnitude will have major implications for both those directly affected and their potential new employers.

"We advise businesses to consider what this means for them and to review and amend their workplace health strategy to ensure they can make the necessary adjustments that having this wider pool of applicants returning to the work environment, perhaps after many years away, will necessitate," she added.