Income Protection Insurance Might Replace Sick Pay

Dame Carol Black, UK national director for health and work, in cooperation with David Frost, British Chambers of Commerce' director general, are currently reviewing sickness absence in UK.

They are planning to replace traditional sick pay with income protection insurance to reduce the cost of illness repayments.

Under the new rules, should they be approved, employers will have to purchase income protection cover for their staff. Then, insurance companies will be the ones responsible for sick pay.

Commenting on the Government's incentive, Mr. McGarry of Unum - UK insurance company - said that "the government needs to look at ways to save money on the welfare bill while also making sure people have a decent income if they fall ill and can't work."

The Government is determined that oftentimes employees do not have a medical problem, but instead show symptoms caused by stress or mental health issues at work.

Income protection insurance is believed to be the best way to resolve the sick pay issue in Great Britain.