GRiD offers its support for a Government-backed campaign to increase reach of Group Income Protection.
Kerr Henderson are active members of GRiD the trade body for group risk . Today GRiD announced their formal response to the Government green paper on improving lives” It has made the case for a number of key recommendations that it believes will have the most impact in encouraging more employers to provide Group Income Protection (GIP) to their staff. These include:
- A campaign by Government to raise awareness among employers and employees that sickness benefits provided by the State are only a safety net and there is a definite need to make additional provision.
- Key information that would help employers make decisions include: stating the need to make provision, making the business case for taking action, guidance & best practice in the event of absence and case studies demonstrating effectiveness.
- The simplification of the interaction between GIP and Universal Credit would help employers to understand that by providing GIP, they are doing much more than merely replacing means-tested State Benefits.
- The introduction of a tax incentive could help to increase take-up of Group Income Protection. This can be justified by the benefits that additional provision would bring for employers, employees and the State but there is a need to be fair to all since GIP is not the only means by which an employer can provide occupational sick pay and vocational rehabilitation. Government might therefore want to consider extending any incentive to non-insured arrangements too.
There is a wealth of support that can be made available through GIP for people with long-term health conditions and disabled people so that they are given the opportunity to work and stay in work. Employers benefit from the contribution and skills they offer, and long-term sickness absence costs can be reduced. For the employee it can provide help with managing health conditions, and their families and dependants are better supported. Overall, of course, it also reduces the burden on the State.
Employers that offer GIP are reaping the benefits and we very much welcome any Government-backed initiatives that extend its reach.
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