With 2026 underway, Simplyhealth CEO Paul Schreier examines how last year reshaped workplace health policy and the implications for employers of every size.

With government priorities recognising the need to pay attention to workplace illness more than ever before, there is a genuine momentum for transformative change in the way we support employees.

2.8 million people are out of work in the UK due to long-term illness creating social, economic, and productivity challenges that directly impact every business in the UK.

Workplace absence is costing £220 billion annually, through loss of productivity and absence rates, making improving workforce health one of the biggest challenges facing the UK today.

The root causes of workplace absence were identified in our Health and wellbeing at work report with the CIPD. Mental health issues, often caused by high workloads and stress, alongside musculoskeletal pain brought on by repetitive, prolonged tasks or lack of movement, are the leading causes of long-term absence. Minor illness remains the most common cause of short-term absence.

The question is no longer whether workplace health matters, but how to seize the opportunities proposed changes offer – prioritising prevention and empower the roles of employers within it.

NHS 10-Year Health plan

A move towards more preventative, patient-focused healthcare is necessary. The government’s 10-Year Plan for the NHS released in the summer rightly prioritised prevention and shifting care away from hospitals and into communities. The plan acknowledges what many employers already know: we cannot simply treat our way out of this crisis.

Employers are central to people’s lives and uniquely positioned to spot health problems early. Workplaces can observe changes in wellbeing and performance, and they can provide immediate access to support before they become serious. They can provide their teams with access to support that could prevent long-term absence, reduce pressure on the NHS, and keep people productive and engaged at work.

Businesses have a vital, but currently underused, role to play in community-based care and support preventative health through simple, affordable, whole-of-workforce health support.

The 10-Year Plan also has an emphasis on digital transformation, investing in digital capabilities to improve productivity within healthcare. Here the public sector can also learn from private innovation, particularly in relation to the expansion of the NHS App. Many private employers are already harnessing digital advancements and using tools like AI to improve and personalise health-related services.

Keep Britain Working review

The Keep Britain Working (KBW) Review, led by Sir Charlie Mayfield, is empowering the role of employers on driving prevention. The final report released in November, looks at issues surrounding ill-health and disability in the workplace and proposes recommendations, now accepted, by government.

Workplace absence now averages 9.4 days per year, up by several days over the last three years. The challenge is growing with evidence showing that workplace-based health interventions work. They catch issues early, provide rapid access when the NHS cannot, preventing minor problems from becoming chronic conditions and keeping employees engaged in work during treatment.

This has potential to be a significant opportunity, meaning this policy might well be one of the most important pieces of work done by anyone in a review for the government in this parliamentary term.

The policy environment now actively supports businesses investing in workforce health, and the tools to do so are more accessible than ever before.

Role of the employer

Yet, rising costs and the tax treatment of workplace health benefits have forced many businesses – particularly smaller ones – to make difficult decisions about the cover they can provide employees.

The Keep Britain Working review recommends risk pooling mechanisms that allow SMEs to improve access to health provision are pivotal to ensuring all employees have the support they need to stay in work.

The review identifies three critical areas where employer intervention makes the biggest difference: mental health support, musculoskeletal care, and rapid GP access. These are the conditions driving the majority of workplace absence, which are often exacerbated by long wait times for primary care services.

For example, the number of people waiting for mental health care has risen by 29% over the last two years, with some waiting two years or more. As a result, many people are taking extra time off work, with some being forced to take long-term sick leave while they wait for treatment.

Preventing workplace sickness and retaining healthy employees means companies can keep invaluable long-term workers in place who have gained industry-specific expertise, experience and skills over the course of many years.

The Keep Britain Working Review findings show that people are five times more likely to return to work if they’ve been out of work for less than a year, compared to those who have been out of work for over a year; it’s in employers’ interest to offer support to get their employees seen sooner and on the road to recovery quicker.

Vanguard and its benchmarking

Employers across the country including Simplyhealth have contributed to shaping the review’s policy recommendations and have now been appointed as ‘vanguard’s’ to help implement the review’s findings.

Through the vanguard-led approach, the first stage will focus on collecting standardised data on areas including sickness absence and return-to-work rates, mapping these against the health interventions, including simple healthcare solutions.

This will create comprehensive benchmarking that shows what works, for which types of organisations, and at what cost. For businesses wondering whether investing in workplace health makes financial sense, this evidence will provide clarity. Government will use this data to establish standards - giving all employers something to aim for and helping employees understand what quality workplace health support looks like.

But you don’t need to be a vanguard employer to benefit from this thinking. The government has made it clear that it wants employers to do more to get their employees back into work, and businesses themselves are keen to retain talent and boost their productivity.

Looking forward – the need for simple healthcare solutions

The conversation has shifted fundamentally. The question is no longer whether employers should invest in workforce health, but how to do so effectively. The policy framework increasingly supports this investment, even in a tight fiscal environment.

Today 27 million people don’t have access to health cover in the workplace and in our survey earlier this year, employees said simplicity was the factor most likely to make them use health benefits. Current workplace health provision, like Private Medical Insurance (PMI) doesn’t do all that is needed.

By simplifying health benefits, employers can offer wider support to employees and see greater return on investment. Employers need accessible healthcare offerings without the complexity to help boost healthcare uptake from employees and reduce the number of people on long-term sick leave.

At Simplyhealth it is about simplifying access to workplace healthcare by removing barriers and reducing costs – providing fast 24/7 GP and mental health support, health cash plans and pay-as-you-go services, with no referral needed.

Continuing in 2026, we look forward to contributing to efforts in demonstrating how employers and healthcare providers can improve access to workplace health provision, reduce absences and boost workplace productivity, ensuring workplace health moves from aspiration to reality.

Find out more about Simplyhealth and its solutions to improve employee health and wellbeing ( https://www.simplyhealth.co.uk/businesses/health-solutions/simplifying-healthcare?att=dv6691 )

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