Legal & General welcomes sickness absence review.
17 February 2011
“For some time, we have been highlighting to government the savings in Statutory Sick Pay (SSP) and Occupational Sick Pay (OSP) which could be made available as a result of more widespread take-up by employers of Group Income Protection (GIP) policies,” said Diane Buckley, Legal & General, Group Protection, Managing Director.
At present, only some 7% of the UK’s working population is covered by a (GIP) policy. These policies, which are taken out by employers, cover staff against loss of income as a result of accident or illness, and frequently feature early, active medical intervention tailored towards facilitating an early return to work. Premiums will vary according to scheme design, but can be as little as 5% of payroll cost and results for illnesses including musculoskeletal conditions, mild depression and stress have shown accelerated returns to work, with corresponding reductions in the numbers of employees at risk of reliance on long-term sate benefits*.
“There are typically three beneficiaries from a GIP policy,” says Diane Buckley. “Employers see a reduction in the cost to the business of absence due to sickness or injury, the state benefits from a reduced exposure to paying benefits and most importantly, the individual benefits from rapid intervention and has a much-improved chance of returning to work within a reasonable timeframe. This is crucial: lengthy absence from the workplace waiting for treatments can exacerbate conditions, and ultimately force individuals out of the workplace altogether. A thriving GIP market helps reduce this waste of economic and human capital.”
Notes to editors
Legal & General provide pensions and group protection to over 7000 corporates and more than two million employees.
*The Government provides financial support called the Employment and Support Allowance (ESA) to anybody unable to work through illness. The statutory maximum weekly ESA is £96.85 a week and could be less if other benefits are received. 75% of claimants are not eligible for initial assessment of ESA as they are deemed fit for work.
(Source:DWP 2010 - ESA claimant figures from 27th October 2009 to 28th February 2010)
Legal & General’s Group Income Protection solution, Workplace Recovery gets 73% of long term absentees back to work. We provide treatment and support from early as week four.
We are the only company to offer a 5% early notification bonus.
We work with independent specialists to provide treatment and support for stress, cancer, musculoskeletal and other conditions.
For more information please contact:
PR Manager, Legal & General Group
t: +44 (0) 20 3124 2092
m: +44 (0) 7764 582574
About Legal & General
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Registered in England. Registered Number: 1417162.
Legal & General Group Plc is a holding company, subsidiary undertakings of which are fully authorised as appropriate under the Financial Services and Markets Act in respect of their investment activities in the UK.
© Legal & General Group Plc 2011