The government's recently published reform plans for supporting individuals with ill health or disability present a significant opportunity for employers. With potential financial savings of £5,000 to £11,000 per retained employee and access to an untapped talent pool, these reforms deserve HR professionals' attention. The government's renewed focus on reasonable adjustments and workplace support will require employers to adapt, but those who do stand to gain considerable competitive advantages.

Key findings from the Keep Britain Working Review discovery report

The discovery report (the Report) forms part of the Review considering how to support ill health and disabled individuals. The Report analyses the statistics and trends behind current inactivity and key issues that the government and employers need to address. It identified three main areas where the Review will make recommendations later in the year:

• Employer incentives: A lot of employers have strong incentives to retain staff and promote good health and wellbeing for employees. However, there is less focus on incentives to support employees absent for ill health or disability reasons and retain them in the workforce. Often employers need to prioritise reorganising work and financially it may be cheaper to recruit a replacement rather than invest in retention.
• Interventions: There is often a delay in employees accessing support and treatment. This often exacerbates and deteriorates their condition and creates further absences.
• Case management: There is often a lack of effective case management in relation to absent employees. If an employer does not handle unstructured periods of leave and absence quickly, this leads to further non-attendance.

The Review is currently collecting evidence and engaging with affected parties. In formulating its recommendations, it will reflect on the options the government is considering as part of its Get Britain Working White Paper.

Proposed changes to Access to Work and support systems: Green Paper on reforming benefits and support for disabled people

The Green Paper sets out plans and proposals to reform health and disability benefits and employment support.  According to the Green Paper, employers could save between £5,000 and £11,000 for each employee they prevent from leaving work due to health conditions or disabilities. With 1 in 10 of working age people claiming a type of health or disability benefit, and approximately 1.8% of GDP (equivalent to £38 billion) spent on disability and incapacity benefits, the potential economic benefits of better supporting employees with health conditions are substantial.

The Green Paper highlights that "flexible working practices, inclusive recruitment and efforts to implement reasonable adjustments will all need to improve in order to increase the employment rate". The consultation seeks views on how the government can support employers, particularly SMEs, to understand what adjustments they can make in the workplace to support employees with a health condition or disability.

The Access to Work programme, which currently reaches only about 1% of working disabled people, is set for significant reform. The government is considering shifting from its current focus on individual grants toward a model that would:

• provide more direct support to employers for creating accessible workplaces;
• use government purchasing power to reduce costs of assistive technology; and
• potentially involve new delivery models that better integrate employer needs.

These changes could make it easier and more cost-effective for employers to implement reasonable adjustments and retain valuable talent.

What HR teams should do now

The consultation (open until 30 June 2025) presents an opportunity for employers to shape policy. In particular, HR professionals might wish to provide input on:

• Question 13: how the government can support a shift in culture around workplace adjustments;
• Question 15: the future role and design of Access to Work; and
• Question 16: how can we better define and utilise the various roles of Access to Work; the Health and Safety Executive; Advisory, Conciliation and Arbitration Service; and the Equalities and Human Rights Commission to achieve a cultural shift in employer awareness and action on workplace adjustments.

Looking ahead: strategic positioning

While these reforms develop, forward-thinking HR teams can take several steps now:

• audit current reasonable adjustment processes and identify improvement areas;
• review absence management procedures to ensure early intervention;
• develop structured case management frameworks for employees with health conditions;
• explore available digital resources like the Support with Employee Health and Disability Service for SMEs; and
• consider participating in the consultation process to shape future support systems.

As these reforms progress, employers who proactively develop inclusive workplace practices will not only meet evolving expectations but gain significant advantages in talent acquisition and retention. With skills shortages affecting many sectors, organisations that effectively support employees with health conditions or disabilities will have access to a wider talent pool and build more resilient workforces. The coming changes represent not just compliance requirements but a strategic opportunity to strengthen your organisation's workforce.