Optimising absence management in the UK: The role of Group Income Protection

The Policy context

The Department for Work and Pensions' Pathways to Work reforms, alongside the findings of the Keep Britain Working Review^[1] reinforce a growing expectation that employers play a more active role in supporting people with work limiting health conditions and disabilities. The emphasis is not simply on getting people back to work, but on helping them remain in good work through inclusive policies, timely access to health support and faster rehabilitation.

The growing absence crisis

Many employers are struggling with this issue: in the UK, the rate of employee absence has reached its highest level in a decade. New evidence from WTW's Absence Management Survey 2026 shows rising absence rates and costs across UK employers. Over half report an increase in short-term absence (51%) and long-term absence and disability (55%) in the past two years, with 52% facing budget pressure from absence management related costs. This is driven predominantly by mental health, minor illness and workplace stress, alongside growing musculoskeletal (MSK) and chronic condition needs.

A strategic shift in approach

In response, organisations are increasingly recognising that traditional, reactive approaches to absence are no longer sufficient. Employers are shifting towards more integrated models that bring together absence management, sick pay, benefits and wellbeing strategy, supported by stronger analytics and earlier intervention. The latest WTW data aligns to this shift: organisations are integrating absence management into HR, pay, benefits and wellbeing strategies (57% plan to do so)^[2], with an increasing focus on enhanced analytics and reporting to understand themes and target interventions. When used effectively, GIP is no longer just a financial safety net for employees who become seriously unwell; it is a core enabler of early support, vocational rehabilitation and sustainable return‑to‑work outcomes.

Leveraging group income protection as a strategic solution for health and wellbeing

With 20,643 group policies in the UK^[3] many employers already recognise this type of protection helps people to avoid financial stress if they become unwell. Not only that, but they are also recognising that by working with insurers they can minimise claims by keeping workers well in the first place. Services like virtual GPs, employee assistance programmes, physical and mental wellbeing support such as personal training and mindfulness therapy and counselling are being provided, with the security of the group income protection payment, as a financial back-up plan. Private healthcare services can also help to fill the gap for employees who are struggling to access support through public healthcare systems, as identified in our 2026 Global Medical Trends Survey which explores this.

Early intervention that works

Using the insurer's early intervention models, when an employee is struggling at work or has gone off sick, the employer can engage vocational rehabilitation consultants from the insurer to help develop a tailored support plan for the individual that will support the employee and the employer to limit extended absence. These group income protection policies and the services they provide, can help employees stay at work or make a timely return to work, helping employers to make the reasonable adjustments that they need. Group risk insurance has proven invaluable to employee health and wellbeing, with 6,733 people helped to return to work in 2024^[4] with the provision of essential support for mental health, musculoskeletal issues and cancer care. This aligns with the Keep Britain Working Review's^[5] focus on early intervention and rapid rehabilitation.

It's not just for large employers

These insurance policies aren't just for the largest employers. In fact, the majority are taken out by small to medium-sized companies.^[6] However, with just under ten percent of the UK working population covered, we believe if more were protected through group income protection, the UK would start to tackle the issues faced with long term work absence.

How are leading employers tackling long term sickness?

It doesn't just end with Group Risk Policies; highly effective employers are also implementing comprehensive strategies and inclusive workplace policies to enhance employee health and wellbeing, addressing both short-term and long-term sickness through a focus on psychological safety, prioritising wellbeing, empowering line managers and early detection.

The most effective employers are implementing comprehensive strategies through six key approaches:

1. 01

   Create psychological safety in the workplace

   Make the workplace a safe place for employees to be themselves: Highly effective employers recognise that people should feel able to bring their whole selves to work. People with long-term conditions know they can access support when they need it and will be met with understanding by their colleagues and managers. Employers who are doing this also communicate their wellbeing initiatives to their organisations and realise that wellbeing and diversity, equity and inclusion [DEI] are closely connected.

2. 02

   Integrate absence management holistically

   Integrate absence with HR, sick pay, benefits and wellbeing: Creating a holistic, consistent framework to replace siloed processes can be the first step in addressing the point that absence management and wellbeing is business critical.  Highly effective organisations integrate it into their key business processes, ensuring that they are prioritising the employee journey.

3. 03

   Empower and train line managers

   Prioritise supporting line managers: Line managers are often the first port of call for somebody who's struggling with their physical or mental health. They should be trained in having sensitive conversations and be able to confidently steer employees toward the support they need. Some Group Income Protection insurers provide line manager training in key conditions that affect absence – to ensure line managers feel confident and competent. In WTW's Absence Management Survey 2026 59% of employers reported that they plan to target manager training on absence issues; equipping managers to spot issues early and navigate support with confidence.

4. 04

   Prioritise early detection

   The best results come when Group Income Protection is integrated with screening, navigation and wellbeing services; from cancer risk checks to digital MSK and mental health tools. By combining the early intervention and vocational rehabilitation support available with enhanced wellbeing programmes, employers prioritising proactive health management report faster returns to work and improved productivity.

5. 05

   Optimise your support pathway

   Avoid duplication; optimise the pathway: As the benefits and support services that companies provide continue to evolve and expand, there is a risk of confusion and potential concerns around benefit spend. A quick pathway map (including GIP value‑add services, Employee Assistance Programme (EAP), Occupational Health (OH), medical, and manager actions) can clarify who does what, when and will steer people to the right support.

6. 06

   Evaluate what works – and what doesn't

   In some organisations, a mismatch exists between the benefits on offer and what matters most to employees. WTW's Wellbeing research shows,^[7] for example, that some employers are prioritising emotional and physical wellbeing while their employees are looking for more support in financial wellbeing. 55% of companies are looking to renegotiate terms or switch to better value providers, with 54% planning to review service capabilities and 56% plan to use enhanced analytics to forecast future costs and risks.

The support landscape is constantly evolving; and as such employers are continually looking at what new support might resonate with their people.

Optimising your wellbeing strategy

Employers are continually moving through a maze of business strategies, managing their people in uncertain economic times, responding to regulation and planning for the future. Adding a wellbeing strategy (as well as the continuous evaluation that this entails) into the mix can feel overwhelming.

Now more than ever, it's crucial to understand how your strategy measures up and so breaking it down into simple steps can be invaluable. We have deep expertise and knowledge in supporting organisations to do this. From developing a wellbeing strategy, carrying out a Wellbeing Audit to help guide future direction or exploring complete employee benefits package in one place, such as Optimal Benefits.

Wellbeing in the workplace is fundamental to a happy and productive workforce. However, many overwhelmed UK employers are (understandably) struggling to keep up to date with wellbeing tools which could help their people and boost productivity.

As absence and costs continue to climb, many employers are taking a more strategic approach—placing Group Income Protection within a prevent-rehab-return framework.

Footnotes

1. "Pathways to Work: Reforming Benefits and Support to Get Britain Working Green Paper," Department for Work & Pensions, March 2025. Return to article undo
2. "Building resilience: How companies in the UK are rethinking absence management," WTW, Absence Management Survey 2026, UK, January 2026. Return to article undo
3. "Group risk market covers 500,000 more lives but growth slowing – Swiss Re," Health & Protection, April 2025. Return to article undo
4. "Seventy-two per cent of new absentees under group income protection policies returned to work during 2024," GRiD (Group Risk Development), 2025. Return to article undo
5. "Independent report - Keep Britain working: Final report", updated 31 March 2026. Return to article undo
6. "UK group risk market grows as small employers lead charge – Swiss Re.”, Reinsurance Business, April 2026. Return to article undo
7. "Employers build momentum on employee wellbeing – but there's still a way to go," WTW, September 2024. Return to article undo

Financial Promotion reference number (12562074)