Health Management Ltd to deliver Health and Work Service

The Government has chosen Health Management Ltd to deliver its Health and Work Service scheme. The scheme is aimed to help the almost 1 million employees who take long-term sick leave each year. The service will be rolled out between now and May 2015.

According to government figures between Sep 2010 and Oct 2013 on average 960,000 employees every year were absent for 1 month or more. Employees will be eligible to use the service when they reach or are expected to reach 4 weeks of sickness absence. The service will mostly be accessed via referrals by GPs and the resulting return to work plan will be shared with their GP and employer.

According to Minister for Welfare Reform Lord Freud, the Health and Work Service will “help to reduce the length of time employees take off sick which, in turn, will cut sick pay costs, improve economic output and reduce the chances of people falling out of work and having to claim benefits. All contributing to the government’s long-term economic plan.”

The new Health and Work Service is predicted to cut sick pay costs to business by £80 million to £165 million a year, as well as increase economic output by up to £900 million a year.

A tax exemption of up to £500 a year per employee on payments for medical treatments recommended by the Health and Work Service or employer-arranged occupational health service will be introduced. Without such tax exemption, the payment would be treated as a taxable benefit in kind, liable to income tax and employer National Insurance contributions.

A case manager will support each employee through the service’s assessment process to ensure their level of need is correctly identified along with appropriate steps to take to get them back to work.