Nigel Murdock, Managing Director of Torquil Clark Employee Benefits said: "There is little doubt that it is the Government's intention to make it more difficult for employees to be absent from work due to ill health and qualify for financial support from the State. It is also clear that, where possible, the welfare system is being geared up to do all it can to keep people at work during ill health. If successful these measures will put increased pressure on employers to take more responsibility for the health, support and welfare of their staff who are suffering ill health.

"Unfortunately there is no hiding place for the employer as the Welfare Reform Act 2007 has meant that changes are now being implemented. This means that those with existing schemes in place, such as Income Protection Schemes, will need to make changes and amendments to the wording of their policies. Understanding and implementing the changes may challenging for many businesses."

It is likely that over time the Welfare Reform Act will have an impact on the design and cost of Employers' Group Income Protection Scheme benefits. These policies are designed to carry on paying an employee for a fixed time period whilst they are off work due to ill health, taking the financial burden away from the employer. It is also likely that the Act will create a need for employers to adopt a more structured exit route for employees that are unable to work due to ill health or injury and that a form of income replacement insurance will be part of that structure.

In order to understand the changes the Government has made by the Welfare Reform Act and the impact it will have on businesses, Torquil Clark Employee Benefits team have been holding a series of small group seminars to business leaders on the subject.

For more information about forthcoming dates please contact Torquil Clark on 01902 576707.