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Government launches initiative to support workers’ health in small businesses

Michael Harland by Michael Harland
December 29, 2025
in UK Health and Safety Latest
Reading Time: 4 mins read
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Government launches initiative to support workers' health in small businesses

Story Highlight

– Government launches training for 5,000 small business managers.
– Initiative aims to reduce illness-related job losses.
– 2.8 million people classified as long-term ill in UK.
– Small firms face high costs from employee illnesses.
– Free training supports employee health and workplace retention.

Full Story

The UK Government has unveiled a new initiative aimed at supporting employees struggling with health issues amid a growing workplace sickness crisis. With the number of long-term sick individuals exceeding 2.8 million, the Department for Work and Pensions (DWP) is providing vital resources to aid small and medium-sized enterprises (SMEs) in maintaining their workforce.

Scheduled to run from January to March 2026, the programme will offer free occupational health training to up to 5,000 line managers across England. This move is part of a concerted effort to reduce the alarming rates of sickness absence that have worsened significantly since the onset of the COVID-19 pandemic. According to a recent review by Keep Britain Working, an additional 800,000 working-age adults are now jobless due to health reasons compared to pre-pandemic levels in 2019.

The DWP has allocated up to £800,000 for the training programme, which aims to equip line managers with the necessary skills to identify early signs of ill health among employees. Training will focus on recognising indicators such as persistent fatigue, changes in behaviour, and rising rates of absenteeism, enabling managers to intervene before problems escalate.

The Institution of Occupational Safety and Health (IOSH) has been tasked with delivering this training, specifically targeting smaller organisations that often have limited resources compared to their larger counterparts. Government data indicates that small businesses face significant costs when staff members fall ill, with estimates suggesting that replacing such workers can average around £11,000. Additionally, each day of sickness absence may result in a loss of approximately £120 in profits for these firms.

Dame Diana Johnson, the DWP’s employment minister, expressed concern for the struggles faced by smaller businesses in managing health-related challenges. “Far too often, small businesses lose skilled employees to health issues without having the necessary tools to support them,” she stated, emphasising the importance of this new initiative. “This free training changes that. It gives line managers the confidence to have the right conversations and make the adjustments that could help keep people in work.”

Johnson further highlighted the wider implications of the initiative, noting, “When small businesses are equipped to support their staff in maintaining their health and wellbeing at work, everyone benefits—including the employees, the businesses themselves, and the economy at large.”

A stark disparity in available health support exists between SMEs and larger organisations. Currently, only 21% of SMEs offer well-being training for line managers, compared to a striking 76% of larger employers. Despite this, among those small firms that do invest in such training, an impressive 79% report its effectiveness in preventing employee health issues.

Business groups have welcomed the announcement, recognising that the rising costs associated with employee training have created barriers for many smaller companies. Tina McKenzie, Policy Chair at the Federation of Small Businesses, conveyed her support for the new programme. “We are pleased to see DWP allocating funds to enhance the skills of SMEs regarding occupational health for their staff,” she said. “Employee welfare is vital for small businesses; however, training courses often become unaffordable amid rising cost pressures. We welcome that around 5,000 SMEs should be better positioned to care for their employees’ health, ultimately helping them to thrive in the workplace.”

The training programme promises to cover several key areas, including referrals to occupational health services, guidance for addressing physical and mental health conditions among employees, and information regarding employers’ legal obligations under the Equality Act 2010, particularly concerning reasonable adjustments in the workplace.

David Tomlinson, Health and Safety Business Partner at the University of Lincoln, who has previously engaged with the IOSH programme, commented on its positive impact: “It has given us greater confidence to help shape our approach to occupational health and wellbeing at work.”

Businesses can pre-register for the training until December 31, with full registration commencing on January 2, 2026. Participation in the training will be voluntary, allowing firms to opt in based on their perceived benefits.

This initiative is part of the Government’s broader Small Business Plan, which features multiple measures aimed at supporting smaller enterprises. These measures include increasing the threshold for employers’ national insurance contributions, cutting £150 from energy bills, freezing rail fares and prescription charges, and offering free apprenticeship training for individuals under 25 for small firms.

As the UK faces a critical juncture in managing workplace health, this government-led initiative represents a proactive step in addressing the needs of employees and employers alike. By equipping line managers with essential skills and knowledge, the government aims to foster healthier work environments and mitigate the risks of long-term sickness, thereby benefiting the broader economy.

Our Thoughts

The article highlights significant challenges faced by small and medium-sized enterprises (SMEs) regarding employee health management, exacerbated by the COVID-19 pandemic. Key issues include insufficient training for line managers to identify health-related problems early, resulting in increased sickness absence and potential job losses.

To avoid such situations, SMEs should prioritize occupational health training for line managers, ensuring they are equipped to recognize and address health issues promptly. In line with the Health and Safety at Work Act 1974, employers are legally obligated to ensure, as far as reasonably practicable, the health, safety, and welfare of their employees. Additionally, failure to provide adequate support could breach the Equality Act 2010, particularly concerning reasonable adjustments for employees with health conditions.

Implementing regular wellbeing training and establishing clear communication channels for health concerns could prevent similar incidents in the future. Moreover, fostering a culture that prioritizes mental and physical health within the workplace would contribute to overall employee welfare and productivity. The initiative mentioned in the article underscores the necessity for ongoing support and resources for SMEs to manage health challenges effectively.

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Michael Harland

Michael Harland

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