Keep Britain Working: the Workplace Health System and what it means for SMEs and employees

09/25/2026
11 min
Keep Britain Working: the Workplace Health System and what it means for SMEs and employees

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Three in four people employed by a large organisation in the United Kingdom can access occupational health (OH) support through their job. For someone working at a small business with fewer than 50 staff, that figure falls to roughly one in four. That disparity has persisted quietly for years, but as of 23 September 2026, it sits at the centre of the most ambitious attempt the UK has ever made to build a structured Workplace Health System. The trigger is numbers that no longer allow inaction.

The Office for National Statistics (ONS) records approximately 2.78 million people aged 16 to 64 as economically inactive primarily because of long-term sickness as of June 2026, up from roughly 2.06 million in June 2019. A further 981,000 people aged 16 to 24 were not in education, employment or training between April and June 2026. Around 300,000 people with a health condition leave work every year, and since 2019 the number of working-age people out of work due to ill health has risen by 800,000, carrying a total economic cost of around £212 billion a year according to the government's Keep Britain Working review.

Sir Charlie Mayfield, co-chair of the Keep Britain Working programme, framed the structural failure plainly: the UK has had a National Health Service for almost 80 years but has never had a Workplace Health System, which is why the same individuals appear on the welfare bill, on NHS waiting lists and in the productivity figures without anyone joining those threads together.

The four-to-six week closing door

The most consequential data point in the Society of Occupational Medicine's (SOM) briefing on the review comes from occupational health provider PAM Group's Benefits of Early Intervention report, covering more than 1,300 OH cases. Workers referred to occupational health while still at work had a 91% chance of remaining in employment a month later. Refer them after one to two months of absence and that probability drops to 45%. Leave it beyond six months and it falls to 27%.

Government analysis reaches the same conclusion by a different route: someone absent for four to six weeks retains a 96% chance of returning to work; after a year, fewer than half do.

Professor Neil Greenberg, President of the Society of Occupational Medicine, described the pattern without ambiguity: the numbers show how quickly the door can close, and getting someone occupational health support while they are still working means nine in ten remain employed, whereas waiting until they have been away for a month or two halves that figure.

The mechanics behind that trajectory are managerial rather than clinical. In the SOM analysis, 55% of absent employees were only referred to OH after being off work for more than a month, and 38% of managers waited until an employee was already absent before offering any support at all. ACAS (the Advisory, Conciliation and Arbitration Service) guidance on managing long-term absence has long recommended early, structured contact during the first two weeks of absence as the baseline for effective return-to-work management. The PAM data suggests a significant share of employers are not meeting even that threshold.

Who actually has access

Occupational health in the UK is largely a function of employer size and sector, not of need. The SOM headline figure: 52% of UK workers have OH available through their job, rising to 59% among employees specifically. The breakdown is more instructive than the average:

  • 81% of public-sector employees have access, against 48% in the private sector.
  • 76% of employees at organisations with 250 or more staff have access, falling to 23% at employers with 2 to 49 employees.

The Chartered Institute of Personnel and Development (CIPD), whose annual Reward Management Survey tracks workforce benefit take-up across its approximately 160,000 members, has consistently found that health and wellbeing provision is among the sharpest differentiators between large and small employers. For a worker at the small-employer end of that distribution, a manageable health condition can become a labour-market exit not because the condition is untreatable but because the infrastructure to catch it early does not exist in their workplace. That is precisely the gap the new system is designed to close.

For employees: what changes for you

If your employer already offers occupational health, day-to-day life does not change immediately on the back of this announcement. What the Workplace Health System is attempting is to make three outcomes more likely across the whole labour market, including for the majority of private-sector workers currently without access.

1. That help arrives earlier. The evidence across the SOM briefing, the PAM report and government analysis is consistent: the point at which support is offered matters more than what the support actually is. A manageable back problem, a mental-health episode or a post-surgical recovery caught in the first few weeks keeps most people in work. Left another two months, roughly half do not return.

2. That accepting an offer of support feels safe. A government survey of 1,949 employees found 83% said they would be likely to agree to a voluntary OH assessment if offered while unwell or on sick leave. The appetite is there. What is missing, particularly in smaller firms, is the offer itself.

3. That raising a health concern does not threaten job security. BSI research cited in the government's announcement found that nearly half of staff who were not confident raising health concerns with their employer had left a role or taken extended leave as a result. It is worth noting that under the Equality Act 2010, long-term health conditions meeting the definition of disability carry legal protections including a duty on employers to make reasonable adjustments - a protection that exists regardless of whether a formal OH referral has taken place.

The gap between employer confidence and employee experience on this point is measurable. Health Shield's Britain at Work polling of more than 2,000 employees and 500 HR decision-makers found 84% of employers believed staff would be comfortable raising physical-health concerns, while only 67% of employees agreed. On mental health, the gap widened: 74% of employers assumed comfort, but only 56% of employees felt it. Paul Shires, Director at Health Shield, noted that many employers feel they have created an open environment, but the findings reveal a clear disconnect between that perception and how comfortable employees actually feel.

What you can do now

These steps apply whether or not your employer is part of one of the eleven regional Vanguards currently testing the new system:

  • Find out what provision already exists at your workplace before you need it. Ask HR or your line manager whether the firm has an OH provider, an Employee Assistance Programme, private medical cover or nothing at all. Knowing the answer in a calm week is considerably more useful than finding out mid-crisis.
  • Raise concerns early, not after a formal absence begins. The single most consistent finding across the SOM, government and PAM data is that referrals made while someone is still at work produce materially better outcomes than referrals made after four weeks off.
  • Understand what an OH assessment involves. It is voluntary and confidential in respect of your medical details. Your employer receives functional guidance on what work you can and cannot do - not access to your clinical file. ACAS publishes plain-English guidance on what an OH referral means in practice.
  • Factor health support into job comparisons. Occupational health provision, private medical cover and cash health plans have become a genuine differentiator in sectors where NHS waiting times affect working capacity. When comparing offers, ask specifically what health support the role includes, and benchmark it alongside salary.

For HR and SME employers: the £87 billion question

The business case for early OH intervention is no longer a welfare argument. Matthew Oakley, Director and founder of WPI Economics, summarised the scale: in 2025, poor workplace health cost the UK £87 billion, with almost £52 billion attributable to sickness absence and a further £20 billion in lost productivity from employees working while sick or injured. The full WPI breakdown: £51.6 billion in lost output from sickness absence, £20.1 billion from presenteeism, £9 billion in statutory and occupational sick pay, and £6.3 billion in conflict, litigation and recruitment costs.

A separate WPI estimate puts the annual cost of barriers to accessing healthcare at £17 billion, of which £2.6 billion relates to healthcare administration conducted during working hours - equivalent to roughly 32,500 full-time employees. The Keep Britain Working review's own figure sits close: approximately £85 billion a year in employer costs, with £47 billion from absence and £21 billion from presenteeism. Sickness absence, per the review, is at its highest level for 15 years and 50% higher than in 2019.

The productivity signal from employee surveys reinforces the financial picture. Simplyhealth's research, polling 5,000 employees and 500 HR decision-makers via Opinium in spring 2026, found 52% of UK employees had delayed seeking healthcare in the past year, losing an average of 2.1 working days simply in attempting to access care. Those who worked while sick or injured did so for an average of 5 days over the year and estimated their output fell by more than 40% on those days. 66% said they would be more productive with quicker healthcare access; 78% of HR decision-makers agreed employees were increasingly expecting better healthcare support from their employers.

For HR professionals operating under the Employment Rights Act 1996 - which governs statutory sick pay entitlement and the fit-note framework under provisions relating to written statements of fitness for work - the early-intervention model aligns with existing obligations rather than creating new ones. The Health and Safety Executive (HSE) Management Standards for work-related stress have for some years set out a framework for identifying and managing the causes of absence before they escalate. What the Workplace Health System adds is the institutional infrastructure, particularly pooled OH access, that SMEs have lacked.

What the Workplace Health System actually is

Four practical components are under development or already being tested:

A BSI employer standard. The British Standards Institution (BSI) is developing a standard for employer workplace-health practice, alongside pooled buying and insurance routes intended to make OH affordable for smaller firms. Anne Hayes, Director of Standards Development at BSI, stated that employers play a critical role, with nearly half of staff who are not confident raising health concerns with their employer having left a role or taken extended leave as a result.

Regional Vanguards. Eleven regional Vanguards - including nine Mayoral Strategic Authorities, Cornwall Council and Worcestershire County Council - and more than 200 Vanguard organisations are already building and testing the system. Hull City Council, working with provider Latus, has created the Hull Resilience Hub, a buyer's pool that allows local SMEs to access OH services at the same prices as large corporates. South Yorkshire Mayoral Combined Authority will trial independent case workers sitting part-time within businesses to support employees with health concerns.

A £3.5 billion employment support package. WorkWell, backed by £259 million, is intended to support up to 250,000 people to stay in or return to work. Connect to Work will reach 300,000 sick or disabled people with tailored support, and more than 1,000 full-time Pathways to Work advisers are already in place across Britain.

An affordability test for SMEs. Jack Latus, Chief Executive of Latus Group, stated plainly that every person who leaves work because of ill health is a loss to their employer, their local economy and the public finances. John Foster, Chief Policy and Campaigns Officer at the CBI, added that making affordability a key test is particularly important at a time when cost pressures are constraining firms' ability to hire and invest. For SMEs currently at the 23% end of the OH access distribution, the pooled-buying model being piloted in Hull represents the most tangible near-term route in.

What HR can act on now

  • Move OH referrals earlier in the absence pathway. If your current trigger is four weeks or a formal absence event, the SOM and government data both indicate that is already too late for a significant proportion of cases. A self-referral or line-manager referral route in the first week - before formal absence begins - captures the cohort most likely to remain in employment.
  • Audit the perception gap. If Health Shield's figures are indicative, roughly one in five of your employees may not feel able to raise a physical-health concern, and closer to two in five on mental health. CIPD member resources and anonymous engagement tools can provide an employer-specific read of where your organisation sits relative to those benchmarks.
  • If you are an SME, track the pooled-buying pilots. The Hull Resilience Hub structure, underpinned by the forthcoming BSI standard, is designed to bring OH within reach of the 23% end of the access distribution. Registering interest with regional Vanguards is the fastest route to early-adopter pricing.
  • Reframe health benefits as flexibility. 90% of employers providing healthcare benefits considered them flexible, while 52% of employees said they needed greater flexibility than was available. That gap is where retention risk concentrates - particularly for employers competing for talent in sectors with above-average NHS waiting times.

The unresolved question

Sir Charlie Mayfield was candid about the reframing the review proposes. He argued that Britain has spent too long treating economic inactivity as a welfare problem, when it is in fact one of the largest and most attainable growth opportunities the country has. Work and Pensions Secretary Pat McFadden identified the practical failure: too many people fall out of work because of a health problem that could have been caught earlier, and too many employers have no reliable way of knowing whether they are getting this right. Minister of State for Work and Health Ally McGovern articulated the personal dimension: anyone can find themselves with an illness that could stop them working, and getting help quickly rather than waiting for the problem to worsen is the right way to support both good health and a strong economy.

What the current plan does not yet resolve is the worker and union dimension. The model is built on employer initiative, voluntary assessment and pooled commercial access. It does not yet set out what workers at firms using the BSI standard will be entitled to ask for, or decline, within those structures. The Information and Consultation of Employees Regulations 2004 (ICE Regulations) give employees at organisations with 50 or more staff rights to be informed and consulted about significant workplace changes, but the Workplace Health System's rollout through individual Vanguards sits below that formal threshold for most participating SMEs. Whether trade unions, particularly those with organising presence in the health and public sectors such as UNISON and Unite, seek to formalise employee rights within the emerging framework remains an open question the eleven Vanguards will effectively test in practice.

The system also rests on a premise - that early, voluntary occupational health is in the mutual interest of both parties - that holds strongly in aggregate. The 83% of employees who said they would accept a voluntary assessment supports that premise. Whether it holds equally across insecure contracts, zero-hours arrangements and low-trust workplaces is what the regional pilots will reveal. Professor Neil Greenberg's summary from the SOM briefing captures the structural problem the system is trying to solve: Britain has slid into a sickness economy, not because people do not want to work and not because employers do not care, but because too often the right support only arrives after someone has already fallen through the cracks.

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