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Businesses 'unprepared' for Welfare Reform

29 July 2008 Breaking News

More than half (56%) of UK companies are still unaware that the Welfare Reform Act is due to come into force this October, a survey by employee benefits consultancy PMI Health Group has found.

The research of 100 businesses revealed that even among those who have heard of the Act, 64% do not fully understand what the potential impact will be on employers and 54% are not aware that they will need to review their group income protection (GIP) policies.

More positively, 75% said they welcomed the Act and 70% said they planned to make workplace adjustments in anticipation of more disabled employees.

A further 46% said they would agree to home working, 60% to job sharing and 80% to providing special equipment where necessary.

Richard Munro, managing director of PMI Health Group, said: "The Welfare Reform Act will have a significant impact on employers and working practices. As well as checking their DDA [Disability Discrimination Act] compliance, companies should also be reviewing their income protection cover to make sure that the promised benefits still hold true."

The Act will change the way incapacity benefit and income support is awarded by focusing on what tasks an individual can perform as opposed to what they cannot do.

Employers may need to review their GIP policies to ensure they reflect the future changes in state benefit provision.

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