By Adam Beazley, Consultant

Last week the Chancellor painted a bleak economic outlook with stagnant growth and tighter public spending – only the MOD and DHSC are receiving notable investment from the Treasury. In return, the Treasury expects DHSC to be an engine for economic growth: getting more people back into work and helping them stay in work. However, as it stands reorganising NHS England and moderately increasing investment is unlikely to be enough, especially in the face of an ageing population. A more ambitious approach is needed—one that recognises the role employers can play in supporting the nation’s health.

To address the number of people out of work due to ill health – today far higher than European counterparts – the Government has also announced significant welfare reforms. Their solution is to rethink our welfare system and introduce cuts to parts of Universal Credit and the Personal Independence Payment, a move which has already been criticised by health organisations.

Should businesses bear some responsibility for their employees’ health?

An alternative solution would be to rethink what role employers, employees and the Government have in keeping us healthy. The UK Government’s ongoing employment law reforms could be a powerful tool to incentivise businesses to play a bigger role in workforce health. Yet, instead of aligning policy changes with the need to reduce long-term sickness absence, current reforms risk adding costs to businesses without offering them the right support or incentives to keep their employees well. Even with the Employment Rights Bill causing growing concern amongst business, earlier this week Angela Rayner doubled down, tying the reforms personally to the Prime Minister.

Germany and other European countries take a different approach, embedding occupational health responsibilities into employment law frameworks, ensuring that businesses actively contribute to workforce wellbeing. Roughly 86% of the German population is enrolled in statutory health insurance alongside universal occupational health services. Other European countries follow similar frameworks, recognising that keeping people healthy is not just the responsibility of the state but also of employers.

Time to rethink the Employment Rights Bill?

If the UK government is serious about getting more people back into work and tackling long-term sickness, it should rethink the scope of its employment law reforms—moving beyond cost burdens to policies that empower businesses to be part of the solution.

This approach might not be as radical as you might first think. Recent polling has shown that 83% of the British public think employers have a responsibility in helping support employees to manage their long-term health conditions to stay in employment. Younger generations are also far more open to accessing healthcare outside the NHS. Many businesses, particularly larger corporates, are already stepping up, offering occupational health services and employee assistance programs. This growing appetite among businesses highlights the role employers are taking in maintaining their employees’ wellbeing.

Sir Charlie Mayfield is looking at exactly the issue of ‘Keeping Britain Working’ and his discovery has already highlighted an increasing role for employers in keeping their employees well. This independent review has the scope to go further – examining European models of employer-led healthcare and radically rethinking the role of UK employers in keeping their workforce healthy. Our European neighbours have shown that incentivising employers to maintain healthy workplaces is a far more effective long-term solution than politically contentious welfare cuts or employment law that imposes growth restrictions.

For a Government struggling to driving economic growth and improve the nation’s health, embracing employer-led healthcare is an obvious step forward. Rather than relying on welfare cuts that will likely increase hardship and strain the NHS further, policymakers should focus on creating a system that rewards businesses for investing in employee health. The solution is clear: if Britain is to tackle its economic and health challenges, it must rethink the role of employers in building a healthier, more resilient workforce.

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