Changes to NHS and the welfare state are feared by SME employers according to Jelf Employee Benefits. Indeed 55% of employers at small- to medium-sized enterprises, fear the cost impact of the reforms on their operations and profitability, showing that the repercussions of the coalition’s changes will be felt much more widely than simply at NHS Trust and individual patient level.
SMEs are the backbone of the British economy as they account for more than 99.9% of enterprises and employ nearly 14 million people, so Jelf Employee Benefits believes it is vital that their concerns over welfare and NHS reforms are heard.
NHS waiting lists and the work-capability assessments
Jelf Employee Benefits believes that the increased financial pressures felt by business, stems from two areas high on the political and media agenda. Anecdotal evidence of increased waiting lists on the NHS may mean key employees take longer to return to the workplace, which in the current economic climate could be catastrophic for marginally profitable employers (and even worse for fledgling business yet to make a return.)
Similarly, the Government’s new approach to means testing those on long-term state incapacity benefit, via the work-capability assessment (WCA), is now finding that huge numbers of people are allegedly ‘fit’ to return to work. In effect, many of these claimants may be forced back into the workplace purely on financial grounds, even though it may be inappropriate for both the employee and employer.
Steve Herbert, head of benefits strategy for Jelf Employee Benefits says: “The Health Bill and welfare reforms are both hugely contentious issues for this country but to date, the debate hasn’t particularly expanded beyond those individuals or organisations on which it will have an immediate impact. Small- and medium-sized enterprises are struggling with a number of economic pressures and this could be the straw that breaks the donkey’s back.
“Consider being an SME owner-manager with 150 employees: at any one time several members of staff may be receiving medical treatment and should they be delayed in returning to work, or be forced in to returning too soon, the consequences for that employer are enormous. The ramifications for micro businesses may be even more extreme.
“As a major provider of healthcare benefits consultancy to SMEs, we very much understand that reforms are required. However, we recommend that the House of Lords should consider the wider impact on business, in the interests of providing a stable labour market and employment opportunities.”
Source : Jelf Benefits
