ProtectionApr 20 2017

Government promotes role of group protection

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Government promotes role of group protection

Group income protection has been identified by the government as having a greater role to play in delivering the goals outlined in the 'Improving Lives’ Green Paper.

During a debate in parliament on Tuesday 18th April, Penny Mordaunt minister of disabled people, health and work, said business could look to “capitalise on the purple pound’s nearly £250bn of spending power” if the correct supportive measures were in place. 

The debate, on long-term health problems and work outcomes, recognised health and wellbeing of staff are crucial contributing factors to the performance and productivity of business in the UK. 

According to government research, some 83 per cent of disabled people acquire their disability during their working lives.

Also help to get people back to work after a period of sickness absence, and reduces the cost for employers of long-term sickness absence. Katharine Moxham

The Mental Health Foundation found in 2016 45 per cent of working people with a diagnosed mental health problem had not disclosed it to their employer in the past five years. 

The minister stated employers who invest in the health and wellbeing of their staff should expect "wider access to talent and skills, improved engagement and retention of employees" and as result should gain "increased performance and productivity of their businesses".

The group risk industry has welcomed this discussion and has offered its assistance to ensure more people have access to such benefits. 

Katharine Moxham, spokesperson for Group Risk Development (GRiD) said: “We are keen to work closely with government on extending the reach of group income protection so more people have access to this valuable benefit through their workplace.”

According to Ms Moxham, group income protection can provide a  “wealth of support” for people with long-term health conditions and disabilities to help them in the workplace.

This support, she continued, can “also help to get people back to work after a period of sickness absence, and reduces the cost for employers of long-term sickness absence.”

Ultimately, she recognised the huge relief workplace protection can offer the state, adding: “Overall, of course, it also reduces the burden on the state.”

The 88-page Green Paper, Improving Lives - The Work, Health and Disability, produced jointly by the Department of Health and the Department for Work and Pensions in November 2016, encouraged the protection industry to create low-cost, simple workplace protection products to encourage take-up among staff.

At the time, Paul Litster, managing director of new protection provider Specialists4Protection, said: "The government is sending out clear signals that protection insurance is coming of age and ready to take its place as a mainstream product in the insurance toolbox."

“However, if GIP schemes are to be a success, the government needs to ensure the appropriate tax breaks are available to make them attractive to employers and employees."