Tax disincentives 'damaging workplace health'

The government is putting the health of workers at risk by persisting with tax disincentives for employers who provide occupational health services, a new report claims.

According to research by Greenstreet Berman – commissioned by the Association of British Insurers (ABI) - employers now see occupational health as central to their attempts to boost productivity and reduce absences.

Employers have apparently come to appreciate the advantages of a fit and healthy workforce and this is inevitably informing their opinions of occupational health services.

But a second report, from NERA Economic Consulting and commissioned by Norwich Union, argues that it is fundamentally unjust that employers should be solely responsible for the funding of occupational health when employees and the government continue to reap the rewards.

Speaking at the ABI's Health Conference on 17 October, director general Stephen Haddrill said: "These influential reports conclude that by removing tax disincentives, occupational health in the workplace could flourish. That would be good for individuals, employers and the government.

"If we stop taxing occupational health as a 'benefit in kind' and remove the current national insurance liability that occupational health attracts, we could greatly enhance this important service," he added.

The trade association for Britain's insurance industry, the ABI has around 400 member companies that provide the vast majority of the insurance business in the UK.