What are the implications for employers of the Mayfield Report to “Keep Britain Working”

With economic inactivity due to ill-health and disability at record levels, the Secretaries of State for Work and Pensions and Business and Trade asked Lord Mayfield in November 2024 to lead an independent review with significant implications for how employers structure their employee benefits.

The review was commissioned to make recommendations to the government that would include the following objectives:

• Identify what more employers can do to tackle economic inactivity due to ill-health and disability in the workforce
• Identify what the government would need to do to encourage and support people living with ill-health and disabled people in work.

The full report can be found here.

Lord Mayfield has stated that one of the reasons he agreed to lead the review was:

“…There are today more people of working-age who are economically inactive for reasons of ill-health and disability than ever before. For some that is unavoidable. Many though would like to work, given the opportunity. Missing out on the benefits of good employment is bad for them, it is bad for the employers, and it is bad for the economy and for society at large.”

The Mayfield Report is extensive, but a key take away for employers is:

“Our strong sense is that prevention, retention, early intervention and rapid rehabilitation in the workplace are likely to be more effective remedies over time. Good work can be protective of health and prevent issues from occurring. We should be striving to achieve that.”

What does this mean for employers?

The Mayfield Report highlights that employers have a key role to play in creating inclusive workplaces which promote mental and physical health and support the retention and rehabilitation of employees. This approach benefits the interests of both the business and its people. There has been an evolution in recent years where wellness and early intervention have been emphasised alongside or within the traditional benefits products employers have offered employees. Often these benefits are not promoted sufficiently, so employers remain unaware of the added benefits already available to them. The list of products is extensive, but two key ones are group income protection and group private medical insurance.

Group income protection

Group income protection will provide an income if an employee is unable to work due to illness. While the income supports the employee financially, the provider will all also help with assessments to aid a return to work. Employee Assistance Programmes (EAP) are usually included, and some plans can include 24 /7 GP telephone/video access, second medical opinion and sessions with mental health practitioners.

Group private medical insurance

Traditionally this has paid for medical diagnosis and treatment. However, over the years services have been added to focus on mental wellness and a proactive approach to health. They usually include EAPs, access to a virtual GP, counselling, treatments with osteopath etc. Some can also offer health screening, gym discounts and an element of optical and dental cover. This means the plan can becomes more relevant for day to day living.

There are too many options to describe here, but there is usually one to suit each employer’s budget and staff demographic. As well as helping with treatment there is an increasing trend to promote health and wellbeing. Using these services offers a number of benefits for employers:

• Demonstrate alignment with the “Keep Britain Working” ethos.
• Demonstrate a will to “look after” employees.
• Enhance the benefits package to attract and keep staff.
• Reduce absenteeism.

Which services to choose and how much to spend?

With all the options on the market it is possible that some employers are unaware of services which are already included in their existing benefits, or even duplicating benefits. We would suggest a 360 review to ensure any existing benefits are fit for purpose and achieving a return on investment for the premium spend as soon as possible. This would include negotiating the best premiums available from the market. Often, we are able to improve terms and reduce cost to the employer without switching provider. For employers who do not currently offer group income protection or group private medical insurance, a review can help assess which options would be most appropriate for your workforce and budget.

Help from the experts

A 360 review can ensure your benefits are fit for purpose and delivers meaningful value to your organisation, whilst also identifying opportunities to negotiate better premiums and assess which options would be most appropriate for your workforce and budget.

Our expert financial planning and employee benefits advisers can help you understand how best to develop strategies tailored to your specific circumstances and to align your efforts with the recommendations of the Mayfield Report.

For a confidential discussion about your needs, please contact us or visit our employee benefits page for further information.