Employers could receive tax rebates and national insurance adjustments for investing in workplace health and insurance benefits, under proposals from the Keep Britain Working review chaired by Sir Charlie Mayfield.
The wide-ranging report argues there is a “strong case” for offering financial incentives to organisations that adopt best practice in supporting employee wellbeing — from preventative health measures and rehabilitation to flexible return-to-work schemes.
Among the list of potential financial incentives proposed is tax relief or rebates for employers certified as ‘adopters’ of workplace health provision. It also suggests that national insurance rebates or surcharges could be used to reward employers who successfully reduce sickness absence and prevent employees from leaving work and moving onto welfare.
In addition, companies that implement effective return-to-work or phased return programmes could qualify for sick pay rebates. While these financial measures are unlikely to feature in the first ‘vanguard’ phase of the rollout, they could be introduced later to encourage wider employer participation.
This review also acknowledged that smaller employers often face greater significant financial barriers in providing health support, due to limited budgets, administrative resources and buying power. The report calls for “pooling mechanisms” — similar to auto-enrolment in pensions — to make high-quality workplace health services more affordable and scalable for SMEs.
It also argues for a “flexible, market-led solution” supported by government to ensure smaller firms and the self-employed can access provision fairly. “Many employers, particularly SMEs, struggle with capital, time and knowledge needed to invest in workplace health,” the report said.
The review envisions an employer-led system built on existing partnerships — drawing together occupational health providers, vocational rehabilitation teams, income protection insurers, and NHS-led initiatives.
While the review places employers at the centre of delivery, Mayfield stressed that government support will be crucial in getting the model off the ground. “Government is critical to resetting the system,” he said. “There is no viable scenario where more public spending alone can solve this. Instead government must enable and incentivise employers and employees to act.”
Mayfield said the initial vanguard phase should provide data to demonstrate the value of investing in employee health and wellbeing. “Robust evidence will show that shared responsibility delivers the best outcomes — keeping people in work, improving health, increasing inclusion and saving the state billions,” he added.
Once the benefits are proven, the report recommends government deploy “a full range of targeted incentives — from procurement, rebates and the tax system, through to welfare and dispute resolution reforms — to drive and sustain change.”
The government has welcomed the review and confirmed plans to proceed with the first phase of the Keep Britain Working initiative, but has not yet commented on the possibility of future tax rebates or NI incentives.
