What the Spring Budget means for the group risk sector
In April 2023, the Office for National Statistics (ONS) published the sickness absence statistics for 2022, which had risen to 2.6%, the highest since 2004. This is the equivalent to around 185.6 million working days lost due to sickness or injury. Or, the loss of almost half a million years of work.
Nearly 30% of absences were caused by minor illnesses, while the sickness absence rate for those with long-term health conditions is at its highest point since 2008.
Separately, in the three months to March 2023, the number of people the ONS lists as economically inactive due to long-term sickness reached a record high.
The government's ambitious vision, set out in its 2016 Improving Lives: The Future of Work, Health and Disability Green Paper, for a society where people understand and act positively upon the important relationship between health, work and disability, is lagging already.
Spring Budget annoucements
Chancellor Jeremy Hunt’s Spring Budget this year prioritised employment, with plans to boost labour supply and encourage individuals back into work via a focus on the long-term sick and disabled, welfare recipients, people aged over 50 and parents.
Addressing the House of Commons, Hunt said the Budget was “aimed at achieving long-term, sustainable economic growth that delivers prosperity for the people of the United Kingdom”.
It included a £406m plan to tackle health issues that are keeping people out of work — with a particular focus on mental health, musculoskeletal conditions and cardiovascular disease.
Also included were plans to expand occupational health (OH) schemes for small and medium employers, with consultations on incentivising greater take up of OH services. Broadly defined, OH maintains the wellbeing of employees, preventing and reducing the impact of ill-health and developing solutions to keep staff with health issues at work.
However, the reach of OH as described by the government in this context is not clear.
Group income protection encompasses a range of health and wellbeing services that, as well as providing support when employees are struggling, can also help employees manage their own health and reduce the risk of long-term sickness absence.
This might include access to 24/7 remote GP and mental health support, early intervention, rehabilitation and return to work support — all in addition to the financial provision if they’re unable to work due to illness or injury.
Getting employees back to work
According to GRiD, the trade body for the group risk market, last year the group risk industry paid more than 16,000 group income protection claims totalling over half a billion pounds. This included more than 5,600 employees returning to work within a year after a period of sick leave and more than 260,000 interactions with additional help and support services.
The insurance sector has a significant role to play in supporting the chancellor’s vision for growth; however, the importance of people when it comes to driving economic growth cannot be overestimated.
At Unum, our vocational rehabilitation consultants have expertise in a wide range of areas, including occupational therapy, occupational psychology, physiotherapy and nursing. They can work closely with existing OH providers to help prevent short-term problems from becoming a long-term absence.
By focusing on stability, the Chancellor has begun to clear a path for the country to focus on growth, help boost the economy and support employees to thrive in the workplace. This is something the group risk industry is well-placed and ready to support with.
Supplied by REBA Associate Member, Unum
Putting people at the heart of employee benefits
