A new health and work assessment and advisory service is to be set up to encourage employers to fund around 110,000 health-related interventions, following the Budget's news of health intervention tax relief.
The Government will also consult on the details of the tax relief later this year ahead of introduction with the service in 2014.
Businesses will benefit from tax relief when they pay to help their employees return to the workplace after sickness. Employers will receive tax relief on expenditure up to £500 covering support, such as specialist equipment or treatment.
Lord Freud, the Minister for Welfare Reform, said: "We need to stop people falling out of work and onto long-term sickness benefits.
"The introduction of tax relief for interventions and the heath assessment and advisory service will help British business to hold on to their staff, help workers stay in work and cut the sickness benefit bill by up to £60million per year."
Funding for the new health and work assessment and advisory will be recycled from the Percentage Threshold Scheme (PTS) which will end in April 2014.
