New research has highlighted the cost savings and personal benefits rehabilitation can bring to income protection providers and their claimants, writes Rachel Williams.
The report, 'An Evaluation of the Gateway Partnership', written by systems analysis research company, Work Structuring Ltd, examines how an alliance of disability organisations and employers commissioned by New Deal rehabilitated a group of long-term disabled benefit claimants back into work.
The initiative is expected to save the Government a considerable sum. The report said: "Initial estimates suggest that this one year intervention, which cost approximately £150,000 will save the Government £400,000 over five years and £843,000 over 10 years. If the project were funded continuously in Hampshire an investment of £150,000,000 would bring a return of £4,500,000. If it were rolled out across the whole country the national saving in incapacity benefit per annum would be in the region of £700m or 10% of the national incapacity benefit budget."
Eighty-eight Incapacity Benefit claimants took part in the scheme with 66 seeing it through to completion. The report said: "It is currently estimated that 50% of those who went through the full process, which is 10% of those who enquired about the course, will go into work.
"In addition to other personal, wealth creation and societal benefits, these will cease to be an Incapacity Benefit or other benefit cost to the nation and become contributors of income tax and National Insurance."
While the research applied to State benefit claimants, Dr Stephen Duckworth, chief executive of Disability Matters a company that works with the disabled and advises employers on issues concerning disability, said that income protection insurers could also save large sums if they adopted similar rehabilitation techniques.
Duckworth said: "The same approach can be used to help income protection claimants return to work - they will have a better quality of life in work than they can on their benefit. And, if you factor up the savings on the higher benefits involved, the reward for insurers will be enormous. This will enable insurers to reduce the cost of insurance making income protection more accessible. With the Government encouraging a shift from State to private responsibility this fits in with all of our aspirations."
However, Duckworth said that it is often a claimant's attitude to their disability that prevents their return to work, rather than the disability itself, and this must change for rehabilitation to be effective.
He said: "I am suggesting that we should brainwash people to realign their new experience of being a disabled person to that of someone who is actively engaged in employment rather than passive and dependent on benefits or income protection.
"Some employers and insurance providers may have an issue with brainwashing. However, it cannot be denied that this is what has already happened to so many people who have recently been sick or disabled.
"The medical profession, the individual's previous attitude to disability, employers, charity adverts and the general portrayal of disability in society have all contributed to brainwashing the recently disabled person to think negatively about their potential and their future."
