The Department for Work and Pensions has today issued details of changes coming in 2026
A lifeline is being thrown to thousands of workers teetering on the brink of losing their jobs due to ill health, thanks to a new Government initiative. The scheme is part of a broader effort to stem the tide of Britain’s escalating sickness crisis.
The Department for Work and Pensions (DWP) is funding occupational health training for 5,000 line managers in small businesses across England. The goal is to prevent employees from slipping out of work and onto benefits.
The free training, set to run from January to March 2026, forms part of a government strategy to cut down the number of people off sick. It comes at a time when over 2.8 million people are categorised as long-term ill – a figure that puts the UK amongst the worst in the G7 club of rich nations.
Official stats reveal a sharp deterioration since the pandemic hit, with an additional 800,000 working-age adults now jobless due to sickness compared to 2019, according to a Keep Britain Working review. Under this scheme, which has been allocated up to £800,000 by the DWP, line managers at small and medium-sized enterprises will be trained to identify early red flags such as persistent fatigue, behavioural changes, and increasing absence levels. This will enable them to step in before issues spiral out of control.
The Institution of Occupational Safety and Health (IOSH) will deliver the training, targeting small firms that often lack the resources of larger employers but bear the brunt when staff fall ill. Small businesses face a hefty £11,000 bill when replacing workers who’ve fallen ill, whilst every single day of sick leave drains roughly £120 from their profits, according to official Government statistics.
DWP employment minister Dame Diana Johnson highlighted how smaller firms are drowning under health challenges they’re simply not equipped to handle. She said: “Too often, small businesses lose skilled staff to health issues without the tools to support them – and that doesn’t help anyone.”
The minister championed the new initiative,. saying: “This free training changes that. It gives line managers the confidence to have the right conversations and make the adjustments that could help keep people in work.”
She stressed the broader benefits: “When small businesses support their staff to stay at work healthy, everyone wins – employees, businesses, and our economy.” A divide exists between company sizes when it comes to health support, with just 21% of SMEs currently offering wellbeing training for managers compared to a whopping 76% of larger employers – despite clear evidence of its effectiveness.
Amongst the minority of smaller companies that do provide such training, an impressive 79% report it successfully prevents staff health problems. Business organisations have welcomed the announcement, acknowledging how escalating expenses have made training unaffordable for numerous companies.
Tina McKenzie, Policy Chair at the Federation of Small Businesses, expressed her approval: “We are pleased to see DWP devoting funds to upskilling SMEs on occupational health issues for their staff. Employee welfare is a priority for small firms, but we know that training courses about it can be put out of reach at a time of rising cost pressures. We welcome that around 5,000 SMEs should be better placed to look after the health of their employees, avoid sickness absence, and help them thrive in the workplace.”
The IOSH programme will encompass referrals to occupational health services, assistance for workers with physical and mental health conditions, and employers’ obligations under the Equality Act 2010, including reasonable workplace adjustments. David Tomlinson, Health and Safety Business Partner at the University of Lincoln, who has undertaken the programme, said: “It’s given us greater confidence to help us shape our approach to occupational health and wellbeing at work.”
Bosses will be able to pre-register for the training until December 31, with complete registration launching on January 2. Participation remains voluntary, with firms opting in based on perceived benefits.
The initiative is part of the Government’s broader Small Business Plan, which includes measures such as lifting the threshold for employers’ national insurance, slashing £150 off energy bills, freezing rail fares and prescription charges, and making under-25 apprenticeship training free for small companies.
