Each manifesto for the upcoming election sets out, in varying amounts of detail, a plan to boost productivity or reduce economic inactivity. The reason why is pretty clear, with the number of economically inactive people out of work due to long-term sickness continuing to grow.
In our view, the focus should not just be on the amounts being paid out, but rather on prevention. Millions of people are leaving work due to ill-health, many of whom could be supported by their employers before they were to fall out of work.
How does each party plan to solve the productivity puzzle?
Each manifesto references wanting to fix the issue of economic activity either through reform to the welfare state or through access to more medical support.
If we take each in turn, the Conservative party wants people who can work to do so and for them to be better off financially for doing so. It plans to do this by making the welfare system more "simple and fair".
Similarly, the Labour party believes that "people who can work, should work" and references changes to employment support, including a reform to the Workforce Capability Assessment.
The Liberal Democrats are decidedly lighter in this area, with some reference to boosting long-term productivity more broadly (eg through creating jobs) but less so preventing ill-health.
It does, however, provide extensive detail on its reforms to the social care system, which is another area that has not seen action promised in previous manifestos across the parties.
In terms of medical support, the Conservatives promise to increase the number of nurses and doctors by 93,000 and 28,000 respectively. Labour wants to increase the number of NHS appointments by 40,000 and mental health practitioners by 8,500. Labour mentioned prevention, albeit briefly, and with no explanation of what policies could back it up.
Missed opportunities to tackle the root cause
Across the board, very little attention is given to the importance of employers and how benefits provided in the workplace can help reduce economic inactivity.
This is a mistake in our view, as the provision of employer-provided disability and critical illness cover or private medical insurances can do so much to keep people healthy and in work.
Not only through the peace of mind of a financial safety net, but also through access to targeted vocational rehabilitation and occupational health services.
These can be valuable tools for employers and employees, especially in a time where waiting lists for NHS treatment are sky high and more people are living in poor health.
What should advisers expect post-election?
There can be little doubt that we will see a mix of public and private healthcare services, whatever the result. This is likely to include a greater emphasis on vocation-related services, which will focus on wider work-related issues rather than just the medical.
The insurance industry, and its intermediaries, will be instrumental when it comes to managing and improving workplace health and making inroads into the number of people out of work.
Why? Insurance provides employers with essential services like HR and employment law advice, but also absence and case management support. For employees, it can provide fast-track access to counselling or physiotherapy, vocational rehabilitation support but also health and wellbeing services.
