Just 1% back to work after illness

A new Learning and Work Institute report suggests just 1% of UK workers looking to return to work after poor health manage to find a job within six months, even though 20% of those considered to be ‘economically inactive’ want to work.

According to the report, a combination of inadequate support to return to work, skewed financial incentives and inflexible employers have created a benefits trap. It is calling for changes to financial incentives for ill and disabled people to work and argues against further cuts to benefits.

Benefit bill concerns

The findings come ahead of government plans to overhaul working-age health and disability benefit which are projected to cost £100bn a year by the end of the decade. Steven Evans, Chief Executive of the Learning and Work Institute, commented in the report, ‘3.5 million people receive incapacity benefits because they are too ill to work, up 37% since the pandemic. Many want to work, but too few are offered help to find work and not enough workplaces offer suitable employment opportunities.”

The report suggests spending £450m a year on improving employment support could save £4bn a year in the longer term, in the form of lower benefit payments and higher tax receipts. The Learning and Work Institute proposes several improvements to the benefits system that it believes would help bring 500,000 more people back into work over a ten-year period. The proposals include improving and decoupling financial support, introducing a new ‘Benefits Passport’, inviting more people to regular ‘work support conversations’, expanded employment support and working with employers to offer better opportunities and to support job retention.

The importance of income protection

The findings highlight how income protection policies can be a valuable safety net for anyone who suffers illness or injury and is unable to return to work quickly. Government support is often insufficient or inflexible, meaning without insurance in place people often struggle financially and lack the tailored support they need to resume employment.

Income protection is invaluable as it pays out a regular ‘income’ which can give added financial security for you and your family, as well as giving you time and space to recover fully and be able to return to work.

Mortgage payment protection insurance (MPPI)

It’s also possible to take out a form of income protection which covers your mortgage repayments if you can’t work due to involuntary redundancy, illness or injury. MPPI can fully cover your monthly repayments as long as they don’t exceed 65% of your gross monthly salary. Most insurers will support you for up to 12 months or until you return to work – whichever is sooner.

As with all insurance policies, conditions and exclusions will apply