Recommendations set out in the Keep Britain Working report will make it easier for organisations to keep their employees healthy and in work. But to achieve the objectives of the report, products and support services may need to evolve.
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Already a huge range of products and services are available in the workplace health and wellbeing space. Ed Watling, head of health and wellbeing at Mattioli Woods, explains: “As well as products that step in when an employee has health issues, such as medical insurance or group risk, there’s been much more focus on prevention and early intervention since the pandemic. It might be a mindfulness app on a cash plan or the rehabilitation services included in group income protection (GIP), but employers now have access to a wide range of resources to support staff.”
Employee health is firmly on the corporate agenda too. According to the CIPD’s Health and Wellbeing at Work 2025 report, 75 per cent of organisations are taking some action to improve employee health and wellbeing, with 57 per cent of employers having a stand-alone wellbeing strategy.
Health support check-up
But although many employees – and employers – can now benefit from these products and services, this hasn’t stopped the UK having a very poor record on workplace health. Around 2.8m working-age people are economically inactive due to health conditions, with this figure set to increase by a further 600,000 by 2030 if no action is taken. As the government moves forward with the report’s recommendations, understanding what works well and where there’s a need for further support or product development
is essential.
On the positive side, statistics from the trade body Group Risk Development (Grid) highlight the success of the early intervention and rehabilitation services provided through GIP. It found that 72 per cent of employees who were flagged as potential GIP claimants in 2024 had returned to work by the end of that year following early intervention from insurers. “The services included on GIP can really help an employee with a health issue,” says Jason Ellis, group protection sales and distribution director at Aviva. “Of the employees we provided with support in 2024, 86 per cent were able to return to, or remain at, work. Often this is within the deferred period, especially for musculoskeletal disorders (97 per cent) and mental health issues (96 per cent).”
Identifying the gaps
While it’s effective, financial pressures mean only around 10 per cent of the working population have access to GIP, with larger employers more likely to take out cover. Budget constraints can put other products such as medical insurance out of the reach of the smaller employer too.
But, without support from an insurer, employers can struggle to access the right services when an employee is dealing with health issues. David Williams, head of group risk at Everywhen, explains: “For a small company, the probability of someone being off long-term is very slim but, if it does happen, they won’t always know where to go for help and support. Accessing the right support early can make the difference between someone coming back to work quickly and them never working again.”
This lack of expertise can also mean that employers of all sizes miss the easy fixes. “It’s not just about helping someone get the medical intervention and support they need,” says Watling. “Reasonable adjustments such as changing a desk if someone has back problems or letting an employee work different hours can make a huge difference to whether someone stays in work.”
Data can often be a problem when it comes to identifying workplace health issues. Research by Grid found that 32 per cent of employers do not measure sickness absence. But, without this insight, it’s much more difficult to support employees and combat the causes of sickness absence.
Future evolution
Given the patchy results employers are achieving from their current wellbeing strategies, some products and services may need to evolve to meet the recommendations of the report.
Understanding which product or service to use, especially when an employee is beginning to struggle with a health issue, is one of the key obstacles to effective early intervention. Without clinical expertise, it’s easy for an employee or employer to overlook the most appropriate service.
Mark Pemberthy, benefits consulting leader at Gallagher, says this is where case management could help deliver better outcomes. “Case management ensures an employee receives a personal approach, where they’re referred to the most appropriate products and services for their health needs. It’s really effective but it might be difficult to scale it up and turn it into a digital service.”
Better signposting
More integration between products could benefit employees too, creating smoother journeys where relevant data and information is shared. Pemberthy says this would create more transparency and make it easier for employees to access the help they need.
This type of approach is already being deployed in insurers’ pathways. Ellis says this helps to direct employees to the right treatment, making their health journey much easier. “We have really good success rates where employees use pathways,” he adds. “All the complexity is behind the scenes making it simpler for
the user.”
As well as creating more targeted support for employees, communication will be an essential part of the mix. “There’s no point having all these health and wellbeing benefits if they’re not communicated effectively,” says Watling. “Raising the profile of support will also make it easier for employees to ask for help if they’re struggling.”
Artificial intelligence could help here too. Pemberthy says this technology is already being used to inform employees’ flexible benefits choices and could potentially work well at guiding them through the different health products and support.
New design
The need for reform could also trigger a GIP makeover, shifting the focus from the financial safety net to the health support services. Williams says he sees businesses take out GIP with the lowest level of cover – typically a two-year term and a payment level of 40-50 per cent of salary – so they can access the support services. “Insurers might want to consider a one-year payment term to enable more people to access support,” he adds. “This would appeal to smaller employers who lack the budget for a more comprehensive product.”
Any product evolution will also need to factor in state provision. As tight budgets mean the government is unlikely to roll out a complete solution, insurers and advisers will still have a key role to play in supporting employers who want to look after workforce health and wellbeing.
There’s also a possibility that the government will make some form of support mandatory. Pemberthy says this could transform the market. “This would deliver the scale the market needs to create an entry-level product, with employers able to upgrade if they want to,” he explains. “We’ve seen this in pensions
with auto-enrolment.”
Shaping support
The next three years will provide the insurance market with greater insight into the future shape of workplace health support. “The Vanguard phase will bring scale to the discussion,” says Ellis. “By sharing stories of best practice, Vanguard employers will help to create a workplace health provision model that’s grounded in evidence-based information.”
Having this recognised framework, with the credibility of government endorsement, will transform the workplace health market, providing employers with the tools, support and advice they need to keep employees healthy and in work.
