Sickness absence review: terms of reference

The review will have the following aims:

• to explore how the current sickness absence system could be changed to help people stay in work, reduce costs and contribute to economic growth
• to examine whether the balance of these costs are appropriately shared between the state, individuals and employers
• to make tangible recommendations for system change, and
• to ensure that recommendations for change are consistent with promoting private sector growth and minimising burdens on business and in particular small and medium-sized businesses.

The review will therefore consider:

• radical and wide-ranging options to achieve these changes over the medium- and long-term
• other international models and their context, such as that in Holland, where the state has successfully reduced its costs
• whether any recommendations made will work as well for those with mental health conditions as they will for other health conditions
• how any options fit with the Coalition Agreement and other agreed Government priorities including: promoting private-sector growth, One-in One-out, the Big Society agenda, and the Employment Law Review
• how any options put forward may work in practice and the potential impact of any changes on employers, businesses (by business size) and labour demand
• the costs and administrative burdens on businesses by business size (micro, small, medium and large)
• the benefits and costs to Government of any proposed changes, and
• the impact on the devolved administrations.

In making recommendations, the review will also consider whether there are wider lessons that can be drawn about how the state supports people who return to work quickly rather than remaining on SSP. It will examine the Industrial Injuries Disablement (IIDB) scheme, which provides state compensation for people who have had “no fault” illness or injury as a result of their employment.