Government-funded occupational health training is now being offered to small businesses in response to rising levels of long-term sickness among the UK workforce. Currently, 2.8 million people are signed off work due to long-term illness, one of the highest rates in the G7, and there are 800,000 more working-age adults out of work for health reasons than in 2019. This places a significant burden on small businesses, which face an average cost of £11,000 to replace an employee lost to ill health, while each day of sickness absence results in approximately £120 in lost profit.
Despite this, only 21% of small businesses provide Line Managers with training on employee health and wellbeing, a stark contrast to the 76% of larger employers who do so. However, of the small businesses that invest in such training, 79% report that it is effective in preventing employee ill health.
To help tackle this issue, the Government, via the Department for Work and Pensions, is allocating funding of £800,000.00 to train Line Managers. The programme will be led by the Institution of Occupational Safety and Health and delivered by Reed Learning in collaboration with International Workplace. It aims to equip Line Managers with the practical skills needed to support staff more effectively, identify early signs of health-related issues such as fatigue or behavioural changes, and increased absence, and hold supportive conversations about workplace adjustments.
The training is designed to enhance managers’ understanding of Occupational Health services and referral processes, build confidence in supporting staff with physical and mental health conditions, and promote early intervention, particularly in relation to obligations under the Equality Act 2010. It also aims to help managers communicate more effectively about health and workplace adjustments.
Further, the training will:
- Enhance Line Managers’ understanding of Occupational Health services and referral processes
- Build confidence in supporting employees with physical and mental health conditions
- Promote early intervention and better support under the Equality Act 2010
- Help them have effective conversations about workplace adjustments and reasonable support
Commenting on the initiative, Dame Diana Johnson, Minister for Employment, emphasised the need for such support:
“Too often, small businesses lose skilled staff to health issues without the tools to support them – and that doesn’t help anyone. 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. When small businesses support their staff to stay at work healthy, everyone wins – employees, businesses, and our economy.”
As to the potential effectiveness of the training, Tina McKenzie, the Policy Chair at the Federation of Small Businesses, has stated:
“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 the time of rising costs 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.”
Registration for the training opened on 2nd January 2026 and Managers can sign up for free through the campaign website. Although participation is voluntary, the Government is encouraging small businesses to take advantage of the scheme, as it aligns well with their Keep Britain Working Review.
Managing sickness absence can be a time-consuming headache for employers of all sizes and very costly if the wrong steps are taken. Any employer needing expert legal advice in this area should not hesitate to contact the team on 0191 384 2441 or Jonathan.Moreland@swinburnemaddison.co.uk.
