Tax breaks proposed to help long-term sick workers return to jobs

Could tax breaks be the key to getting 150,000 people back to work? A new plan promises savings for employers—and the Treasury.

, and Administrator

2025 November 19 . 9:21 PM

1 min read

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Tax breaks proposed to help long-term sick workers return to jobs

A new proposal could help thousands of long-term sick workers return to employment. The Good Growth Foundation (GGF) has put forward a plan offering tax breaks to employers who hire people coming off extended sick leave. Backed by major business groups, the scheme aims to tackle Britain’s rising sickness absence rates while cutting costs for the Treasury.

The policy centres on a national insurance holiday for companies that take on employees transitioning from long-term sickness or disability benefits. Supporters argue this would ease the financial burden on businesses while helping workers gradually rebuild productivity. The GGF estimates that nearly 150,000 people could re-enter the workforce under the scheme, saving the government £1.1 billion each year.

The plan would introduce a structured approach to reducing long-term sickness absence. With business backing and projected savings, it could reshape how employers and the government handle workforce reintegration. The next step depends on whether policymakers adopt the proposal and turn it into action.