New requirements on banks will protect freedom of expression
New rules will give consumers greater confidence to challenge account closures
Changes available because of Brexit and recent government legislation
Banks will be forced to explain and delay any decision to close an account under new rules, protecting freedom of expression.
The Government has stepped in to address fears that banks are terminating accounts because they disagree with someone’s political beliefs.
The changes will increase the notice period to 90 days – giving customers more time to challenge a decision through the Financial Ombudsman Service, or find a replacement bank.
Banks will also be required to spell out why they are terminating a bank account – boosting transparency for customers and aiding their efforts to overturn decisions.
The changes announced today can only be made due to new powers in the Financial Services and Markets Act 2023, which give Britain control of its financial rulebook following Brexit.
Economic Secretary to the Treasury, Andrew Griffith, said:“Freedom of speech is a cornerstone of our democracy, and it must be respected by all institutions.
“Banks occupy a privileged place in society, and it is right that we fairly balance the rights of banks to act in their commercial interest, with the right for everyone to express themselves freely.
“These changes will boost the rights of customers – providing real transparency, time to appeal and making it a much fairer playing field.”
The proposed changes follow a call for evidence launched in January, following PayPal’s temporary suspension of several accounts last year. It found that changes were needed to ensure the right balance is being struck between protecting customers, and providers’ rights to manage commercial risk.
They require secondary legislation, which will be delivered through the powers granted in the Financial Services and Markets Act 2023, as part of the Government’s programme in building a Smarter Regulatory Framework for UK financial services.
This runs alongside separate plans to clarify in legislation the requirements for Politically Exposed Persons (PEPs), and a review into whether these are being applied proportionately by financial institutions.
These steps were commissioned by Parliament last month as part of the Financial Services and Markets Act 2023; and the FCA will set out how they intend to conduct the review by the end of September.
East Lothian is authority with highest average price
Transaction levels are second lowest of last ten years
Average Scottish house price £224,033, up 1.2% on April, up 1.9% annually
Table 1. Average House Prices in Scotland for the period May 2022 – May 2023
Scott Jack, Regional Development Director at Walker Fraser Steele, comments:“Our data shows that the Scottish housing market has seen another increase in average prices for the second month in succession.
“The average house price has risen in the month by some £2,600, or 1.2%, the largest increase since March 2022. The average house price in Scotland now stands at £224,033, which is £4,125, or 1.9%, higher than twelve months earlier.
“This strength of performance has to be seen in the context of broader market trends. Affordability has become the key issue in mortgage lending and is impacting would-be buyers. Inflation continues to loom over the UK and higher interest rates are an inevitability which makes the resilience of the Scottish market all the more remarkable. The squeeze on borrowers will continue and lenders have already sign-posted a contraction in the supply of mortgage loans over the coming months.
“We can see how affordability is impacting the market in the demand and subsequent price rises attributed to flats. Flats have increased in average price over the month by 3.8%, with semis and terraced properties both seeing a 1.5% increase. They now offer better value to buyers after months of subdued growth.”
Commentary: John Tindale, Acadata Senior Housing Analyst
The May housing market
Scotland’s housing market in May has shown a further increase in average prices, despite the economic headwinds of higher interest rates, increased consumer inflation and diminishing affordability. The average house price has risen in the month by some £2,600, or 1.2%, the largest increase since March 2022. Scotland’s average house price now stands at £224,033, which is £4,125, or 1.9%, higher than twelve months earlier. It also establishes a new record price for Scotland as a whole.
Figure 1. Scotland’s average house price for the period from March 2020 to May 2023
Figure 1 shows the movement in average house prices in Scotland from March 2020 – at the start of the pandemic, when the price was £183,017 – to May 2023. This amounted to an increase of £41,000, or 22.4%, over the period, and compares to an increase of 17.8% in the CPIH Index – so in real terms (after allowing for consumer price inflation) the average house price in Scotland has risen by 4.6%.
Scotland is not alone in seeing prices rise in May – the same pattern was also present in the North East of England, where prices rose by 0.9% in the month. The average house price in the North East is £202,491, which is the lowest of all the nine GOR regions in England and in Wales, with the Welsh average price now standing at £241,994. Scotland’s house price is the second lowest of all countries and regions in Great Britain.
Scotland has not been immune to the high rates of interest and the significant cost of living increases. As is shown on page 7, transaction levels in 2023 have fallen to their second lowest since 2013. The lowest level of the last ten years was observed in 2020 at the start of the Covid pandemic.
Unlike April 2023, when the increase in prices was concentrated in the high-value local authority areas in Scotland, the increase in values in May 2023 has been spread more evenly across the country. For example, of the £2,623 increase in the average price in the month at the national level, £1,343 originates from the top 16 local authority areas by value, and £1,280 from the lowest 16 areas by value – hardly a significant difference.
There has been a change in emphasis in May between property types, which is contra to recent experience. Flats have increased in average price over the month by 3.8%, with semis and terraced properties both seeing a 1.5% increase. On the other hand, detached properties have seen a -0.4% fall in average prices. This would explain the more even price increases across the local authority areas in Scotland in May, as flats are more universally spread throughout the country.
Local Authority Analysis
Table 2. Average House Prices in Scotland, by local authority area, comparing May 2022, April 2023 and May 2023
Table 2 above shows the average house price and percentage change (over the last month and year) by Local Authority Area for May 2022, as well as for April and May 2023, calculated on a seasonal and mix-adjusted basis. The ranking in Table 2 is based on the local authority area’s average house price for May 2023. Local Authority areas shaded in blue experienced record average house prices in May 2023.
Annual change
The average house price in Scotland in May 2023 has increased by £4,125 – or 1.9% – over the last twelve months. This annual rate of growth has increased by 0.3% from April’s 1.6%, and is the second consecutive upward movement in the annual rate of growth in 2023.
In May 2023, 20 of the 32 local authority areas in Scotland were seeing their average prices rise above the levels of twelve months earlier, one more than in April. Interestingly, only three of the top eleven areas ranked by value had price falls over the year, whereas six of the bottom eleven areas ranked by value saw prices fall. These statistics are less dramatic than in April 2023, when the numbers showed only two high-value areas and eight low-value areas with price falls. There is hence still a split between the behaviour of the high- and low-value areas, but it is less of a feature than previously experienced. For the record, the three high-value areas with price falls are East Dunbartonshire (-5.5%), Edinburgh (-1.6%) and Stirling (-0.6%).
The area with the highest annual increase in average house prices in May 2023 was – top of Table 2 – East Lothian, up by 10.9%. All property types in East Lothian, except flats, have seen an increase in their average prices over the last twelve months, with this month’s overall average being enhanced by the sale of a four-bedroom detached property in Gullane, for £1.275 million. The property overlooks the six-hole Children’s Golf Course – any child can play on the course at a minimal cost. Adults are also welcome to play, but they must be accompanied by a child.
On a weight-adjusted basis – which incorporates both the change in prices and the number of transactions involved – there were five local authority areas in May which accounted for 51% of the £4,125 increase in Scotland’s average house price over the year. The five areas, in descending order of influence, are: – East Lothian (13%); East Renfrewshire (11%); Perth and Kinross (10%); Fife (9%); and Renfrewshire (8%). Edinburgh accounted for 38% of the price falls in May, with all property types seeing values fall over the year.
Monthly change
In May 2023, Scotland’s average house price rose in the month by some £2,600, or 1.2%. The increase in the month is the highest since March 2022, some 14 months earlier. In May 2023, 24 of the 32 Local Authority areas in Scotland experienced rising prices in the month, four more than in April. Of the 24 local authorities with price increases in May, 11 are in the top half when ranked by price, and 13 in the lower half.
The largest increase in average prices in the month was in Inverclyde, up by 11.4%. However, Inverclyde has the second-lowest transaction count on the mainland, which tends to result in volatile movements in its average prices, especially when expressed in percentage terms. In second place is Dundee City, where prices have risen by 4.4% in the month. This increase was assisted by the sale of a new-build 3-bedroom detached home in Broughty Ferry for £1.2 million.
On a weight-adjusted basis, similar to that described above, the five local authorities which accounted for 47% of the increase in prices in the month were:- Glasgow (14%); Perth and Kinross (11%), East Lothian (10%) Inverclyde (6%) and Dundee City (6%). The Perth average prices are elevated this month by the sale of Glencarse House, which the agents describe as being one of Perthshire’s finest Country Houses. It has ten bedrooms and 18.6 acres of land. It sold for £2.35 million.
Peak Prices
Each month, in Table 2 above, the local authority areas which have reached a new record in their average house prices are highlighted in light blue. In May 2023, there are 5 such authorities, down from 7 seen in April. 3 of these 5 areas are in the bottom 10 authorities when ranked by price, with 2 in the top 10 – including East Lothian which is currently top of Table 2. Also of interest is that Scotland’s overall average price is similarly at a record price – for the first time in the last six months.
Scotland transactions of £750k or higher
Table 3. The number of transactions by month in Scotland greater than or equal to £750k, January 2015 – May 2023
Table 3 shows the number of transactions per month in Scotland which are equal to or greater than £750k. The threshold of £750k has been selected as it is the breakpoint at which the highest rate of LBTT becomes payable.
There were 43 such transactions recorded by RoS relating to May 2023. Currently, this is the fourth highest May total recorded to date, but this may rise to third place as RoS continues to process additional sales.
Looking at the number of high-value properties sold in the first four months of each year in Table 3, 2023 is ranked in fourth place – although the March totals in 2015 and 2021 are perhaps artificially high, having been boosted by tax-related events – these were the introduction of the LBTT in place of SDLT in April 2015 and the ending of the Covid related LBTT tax-holiday in April 2021.
However, there is a clear trend, in that the totals in each of the first five months of 2023 are lower than those in 2022, suggesting that some of the enthusiasm that existed in the 2022 housing market for the purchase of large country homes has dissipated, except perhaps in Perthshire (see above).
Edinburgh accounts for 137 of the 309 high-value sales (44%) that have been recorded to date by RoS in 2023, compared to 48% in 2022. There are two local authority areas having an equal second-highest number of sales in excess of £750k in 2023 – these were Glasgow City and East Lothian, but with just 18 such sales apiece.
Transactions analysis
Figure 2 below shows the monthly transaction count for purchases during the period from January 2015 to May 2023, based on RoS (Registers of Scotland) figures for the Date of Entry (except for May 2023, which is based on RoS Application Dates).
The chart shows how, in general, transactions in May are higher than in April as sales climb to a summer peak, which can occur in June, July or August. In fact, in Figure 2, May is higher than April in eight of the nine years displayed – the one exception being 2022, as the country was slowly emerging from the pandemic.
2023 (the black line) has the second-lowest number of transactions for the first five months of each of the nine years shown in Figure 2, at 34,075 sales. The lowest year, at 25,324 sales, is 2020 (the teal line) – March 2020 having been the month in which the first Covid lockdown was announced. The decline in the current year’s level of transactions compared to previous years appears to have begun from having the second-highest number of sales in September 2022, falling to the lowest of the nine years by January 2023.
The start of the reduction in sales coincided with both the arrival of Mrs Truss as Prime Minister on 6 September 2022 and the seventh increase since December 2021 of the official bank rate, to 2.25%, on 22 September 2022. Liz Truss departed as Prime Minister on 25 October 2022. The bank rate was further increased on 3 November and 15 December 2022, ending the year at 3.5%.
The bank rate was raised again on 2 February 2023, 23 March 2023, 11 May 2023 and 22 June 2023, and now stands at 5.0%. It would thus appear that the increase in mortgage costs, especially since September 2022, has been having a negative effect on the number of housing sales taking place each month in Scotland’s housing market.
Figure 2. The number of sales per month recorded by RoS based on entry date from 2015 – 2023
Heat Map
The heat map below shows the rate of house price growth for the 12 months ending May 2023. As reported above, 20 of the 32 local authority areas in Scotland have seen a rise in their average property values over the last year.
The highest increase on the mainland over the twelve months to May 2023 was in East Lothian, up by 10.9%, followed by East Renfrewshire at 10.7% and the Scottish Borders at 8.8%. At the other end of the scale, it was Clackmannanshire that had the largest fall in prices over the previous twelve months at -6.2%.
Comparisons with Scotland
Figure 3. Scotland house prices, compared with England and Wales, North East and North West for the period January 2005-May 2023
Figure 4. A comparison of the annual change in house prices in Scotland, England and Wales, North East and North West for the period January 2020–May 2023
Scotland’s Eight Cities
Figure 5. Average house prices for Scotland’s eight cities from March 2022–May 2023
Figure 6. Average house prices for Scotland’s eight cities May 2023
With just weeks to go before RSABI’s Great Glen Challenge, 24 hardy teams from a wide range of roles in Scottish agriculture are now training hard for the multi-sport event between Fort Augustus and Fort William on August 25.
The teams are also fundraising in a bid to help RSABI, the charity which supports people in Scottish agriculture, reach the ambitious target of £50,000 by taking part in the event, sponsored by expert legal advisors to the rural sector, Gillespie Macandrew.
A fantastic total of around £18,000 has already been raised by those taking part, and RSABI is encouraging supporters to dig deep and get behind those taking part in the challenge to help the charity provide emotional, practical and financial support to people in Scottish agriculture.
The Great Glen Challenge 2023 will see competing teams of four plus a support driver take on a day jam-packed with activity in one of the most beautiful parts of Scotland. The route consists of a 49km mountain bike, 6km kayak, 18km walk, and 17km run and is designed to challenge teams, promoting commitment and teamwork from the onset of training up to the day of the event.
After competing in last year’s Great Glen Challenge, overall event sponsors Gillespie Macandrew have this year signed up two teams – GMac Movers and GMac Shakers. NFU Scotland have managed to rustle up a brilliant total of three teams and SP Energy Networks have got two teams entered.
Others taking part include Bell Ingram, Bidwells LLP, the Crofting Commission, Davidson & Robertson, James Hutton Institute, Johnston Carmichael, Royal Bank of Scotland, SAC Consulting, Scottish Association of Young Farmers Clubs (north region), Scottish Woodlands, Tarff Valley, Thomson Cooper Accountants, Thorntons, and Virgin Money, Bank of Scotland and Galbraith.
Last year’s winners, Team Shannoch, will also be back to try to retain their position at the top of the Great Glen leaderboard.
The Scottish Farmer is again kindly media partner for the event, and to support racegoers, People’s Ford are kindly providing a Ford Ranger to join the fleet of support vehicles, while letting agents Rettie & Co have signed up as this year’s route sponsors and map creators.
As well as offering an event with a unique team-building spirit, the Great Glen Challenge also highlights the importance of keeping fit to maintaining good physical and mental health.
Carol McLaren, RSABI Chief Executive, said: “There is something very special about the Great Glen Challenge and we are delighted that so many people from different parts of Scottish agriculture are this year getting behind it.
“Everyone is busy and for so many people to make time to support our flagship fundraising event of the year means a great deal. Our thanks also go to everyone who kindly sponsors the teams and a special thanks to Gillespie Macandrew, our overall event sponsor this year.
“Our thanks also go to the volunteers who help us run the event, our media partners, The Scottish Farmer, and all those who have already generously donated to the competing teams. Donations have been coming in thick and fast, setting us in good stead to reach our ambitious £50,000 target.”
Team donations for the Great Glen challenge are now open.
To donate and find out more about how to support the teams, visit:
Recent statistics highlighting a sharp increase in attacks on school staff, and the fact that almost all of these are linked to pupils with additional support needs (ASN), should come as no surprise to those like us who have been arguing for some time that this issue is quickly becoming a national scandal.
The number of children and young people with ASN has more than doubled since 2012, and now amounts to more than a third of pupils. This has been further exacerbated by increasing mental health problems, the Covid-19 pandemic and cost- of-living crisis.
However, this is set against a background of acute under-resourcing, with the number of specialist ASN teachers falling by 546 between 2012 and 2022 as just one example.
Additional funding is desperately needed to increase the numbers of specialist staff available to support those with ASN, as well as better support for teachers working with young people from a wide range of backgrounds. We would also suggest that the Scottish Government expand school counselling provision to all primary and special schools.
Violence against any member of school staff or another pupil is never acceptable, and it is critical that local authorities and the Scottish Government take all possible action to ensure that our schools are safe places to work and to learn.
Public invited to step forward to community roles after post-covid decline
SCOTLAND’S national walking charity has encouraged Edinburgh locals to become Volunteer Walk Leaders to lead Health Walks in the area.
Paths for All supports a network of more than 800 short, social, and accessible low-level walks which are led by trained volunteers.
However, since the end of the global pandemic, the charity has recorded a decline in Walk Leaders throughout Scotland.
The Stirling-based organisation has launched a recruitment campaign to tackle the shortage and encourage Scot’s up and down the country to become volunteers in the Scottish Health Walk Network.
Kevin Lafferty, Chief Executive Officer of Paths for All, said: “Walk Leaders are the most integral part of a Health Walk and the time and care they give to the local communities they serve is extremely valuable.
“Health Walk Volunteers help to support the health and wellbeing of local people by providing a safe, fun and friendly space for people to be active, socialise and enjoy the outdoors. But volunteers experience many benefits too – exercise, getting outside and a having a good blether, all while helping others.
“Training is provided so volunteers feel confident and ready to lead the walks, for all ages and abilities, in their communities.”
Individuals who are looking to give back to their community, enjoy the outdoors and keeping active, or are already part of a Health Walk are encouraged to apply.
Charlotte Mackenzie, Health Walks Project Manager for Highland Third Sector Interface helps to coordinate over 200 walkers across 30 Health Walks across the Highlands.
She said: “Health Walk Leaders are the backbone of Walking Groups. For many individuals, particularly those who live in remote communities, being part of a Health Walk can be the highlight of their week making it extremely important that Health Walk Leaders are there to guide and arrange regular outings.
“Being a Walk Leader has so many benefits. I often ask the leaders I work with what they find to be the best part of their role and the feedback is normally very similar; they feel a positive change in their mental health, confidence as well as their self-esteem- which is fantastic.
“For anyone considering becoming a Health Walk Leader, I would highly recommend it. Not only will you see so many benefits for yourself but it’s great opportunity to have a positive effect on your local community. “
Paths for All has a clear and simple aim, which is to get Scotland walking: everyone, every day, everywhere. Walking outdoors is a fantastic way to boost your mood, clear your head and benefit from fresh air in local parks and greenspaces.
Efforts to reduce the number of households living in temporary accommodation will be backed by at least £60 million to support a national acquisition plan to increase the supply of social and affordable housing.
The funding will support councils and registered social landlords to purchase properties including empty homes and private sector homes.
Other measures to reduce temporary accommodation will include working with social landlords to increase allocations to homeless households and providing national guidance for local authorities to support good practice around changing temporary accommodation into permanent affordable homes.
Bespoke plans to address specific issues will also be developed with the local authorities with the greatest temporary accommodation pressures.
First Minister Humza Yousaf said: “Housing is crucial to achieving our aspirations of a fairer country.
“We recognise the varying challenges that exist across Scotland and that these cannot be addressed by a single solution.
“That is why the range of actions we will be taking, including our £60 million plan, will help us effect real change.
“A great deal of consideration has been given to the best way to reduce the number of households in temporary accommodation. I am thankful to members of the Temporary Accommodation Task and Finish Group and all its contributors for the role they played in shaping the final recommendations.”
John Mills, Co-Chair of ALACHO and joint chair of the Task and Finish Group, said: “We’re heartened by the Scottish Government’s recognition of the seriousness of the current situation, the damage that is being done to many families living in temporary accommodation for long periods and the increasing challenges councils are facing in meeting their needs.
“We’re particularly pleased by the commitment to a national acquisitions programme to bring more homes into social renting quickly and we look forward to working with the Scottish Government, COSLA and Shelter Scotland to recapture the momentum towards ending homeless that we had pre-pandemic.”
Alison Watson, Director of Shelter Scotland and co-chair of the Temporary Accommodation Task & Finish Group, said: “Scotland is experiencing a housing emergency that is ruining lives. By being here today, the First Minister is showing that he is serious about this emergency.
“At Shelter Scotland, we see the impact of our broken and biased housing system in the work we do with families and individuals trapped in temporary accommodation. When a system isn’t working it is those groups most marginalised – children, disabled people and minoritised ethnic groups – that feel the impact the most.
“That is why I was so honoured to co-chair this expert group which engaged directly with people experiencing homelessness. They identified three key priorities for the Scottish Government. Firstly, buy and build more homes to deal with the current emergency; secondly, prioritise the homes we have for people experiencing homelessness; and finally, fully-fund high-quality services that always treat people with dignity.
“Today’s announcement is the first step in the right direction to bring down the number of households in temporary accommodation from its current record high. It must not be the last.”
A community focused, environmental and wellbeing initiative led by Scotmid, is giving Edinburgh locals the chance to nurture and grow their own fresh fruit for free.
Scotmid is encouraging groups in Edinburgh to apply for £200 to purchase fruit trees or bushes to plant in a publicly accessible area, as part of its already highly successful, Scotland-wide Community Orchard campaign.
The campaign, created to encourage people to work together, increase physical activity and benefit the local environment, has spread its roots far and wide since launching earlier this year, with more than 70 orchards having been planted in sites up and down the country.
The retailer is now urging those in Edinburgh to apply, in a bid to complete Scotmid’s ambition to have a community orchard close to every Scotmid store.
Lynne Ogg, Communities Manager at Scotmid, said: “It has been so encouraging watching communities come together to plant a whole host of fruit trees and bushes. Some of our groups have already spotted their first fruit and we can’t wait to hear how good they taste!
“Not only is this a fun way to get together with your local community but it’s also a really easy way to get outside and enjoy your local environment – we would love for more communities to benefit from this initiative.”
Seeding success: Scotmid’s Winchburgh Community Orchard – Case Study
Orchards offer volunteering opportunities throughout the year, as well as the chance to learn new skills, create habitats for wildlife and produce an array of edible produce.
Since securing the Scotmid Community Orchard grant, the Winchburgh Community Growing Group has extended its community growing space.
The West Lothian based group started in 2018, with 50 planters across the village. By 2022, it had grown and moved to a 1.5acre site in Auldcathie Park which includes trees, planters, a community cabin and a kids zone.
The community growing space used Scotmid’s Community Orchard funding to purchase and plant eight Braeburn apple trees. Community volunteers will grow fruit to eat, cook and turn into juices.
Students from SRUC Oatridge college and local volunteers have been responsible for the planting and maintenance of the orchard, which is an open community space that hosts regular free growing and community events.
The orchard trees were planted close to Winchburgh’s Scotmid store, in a zone designed for wildlife and growing. Over 80 people in the community have benefitted from the additional trees from the Community Orchard initiative, with volunteers grafting, pruning and taking care of them for the benefit of the wider community.
John West from Winchburgh Community Growing Group, said:“The funding from Scotmid has helped us to purchase and plant eight apple trees which will provide Winchburgh locals with apples for years to come.
“As much as we are all excited to see the apples grow, it’s also been really rewarding to see members of the community work together to care for the orchard – now we can’t wait to try our first apple crumble!”
Plans to boost UK employment through widening access to high-quality health support in the workplace are being unveiled today by the Westminster Government
Ministers are urging employers to do more to keep workers healthy and reduce the numbers out of work due to long-term sickness
Consultation launching on measures to increase employer uptake and widen reach of Occupational Health
Plans include a new standard for businesses to adopt to boost health in the workplace
Better workplace support expected to grow the economy and tackle inactivity by improving productivity and preventing health-related job losses
The Department for Work and Pensions (DWP) and Department of Health and Social Care (DHSC) are today publishing a consultation on ways to increase uptake of Occupational Health provision.
Employers will be encouraged to take up Occupational Health offers to help employees access vital mental and physical health support at work, particularly for those working in small and medium-sized enterprises.
These proposals include introducing a national “health at work” standard for all employers to provide a baseline for quality Occupational Health provision, which includes guidance, an option to pursue accreditation, and additional government support services – for example outreach workers to support SMEs to meet the standards.
It also seeks views on developing longer-term workforce capacity to help meet any increased demand for Occupational Health services in the future by:
Encouraging NHS leavers or those who are considering a career change to pivot towards the Occupational Health specialism
Developing a longer-term, multi-disciplinary workforce to provide Occupational Health services
The consultation will also ask employers to share their examples of good Occupational Health provision to help inform other businesses and encourage them to provide the same.
Secretary of State for Work and Pensions, Mel Stride MP, said: “This Government is investing billions in getting people back to work and growing the economy. We need employers to keep playing their part too.
“Healthy businesses need healthy workers – employers will benefit from higher retention rates, more productive workers, and fewer work days lost due to sickness. Improving health in the workplace is a vital piece of the puzzle in our drive to increase employment.”
Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “Long-term sickness is a huge contributor to economic inactivity, and while of course some people are unable to work, better accommodation of health problems in the workplace will open up a wider workforce to employers and support employees with a range of needs.
“Many small and medium-sized business owners already invest significantly in the health and wellbeing of their workforce, but this will be a gamechanger in identifying and removing obstacles to people with health conditions starting, staying and succeeding in work.”
To also help keep people in work, the government will today also publish a separate consultation looking at options to increase investment in Occupational Health services by UK wide employers through the tax system.
This follows its announcement at the Spring Budget where it committed to consult on incentivising greater provision of Occupational Health through the tax system.
The government wants to explore the case for providing additional tax relief to businesses on their Occupational Health costs.
In particular, the consultation asks respondents for their experiences of providing Occupational Health, including what services they provide and any barriers they experience. It also asks for evidence on the effectiveness of existing tax incentives and asks respondents for their views on the merits of expanding the existing Benefit-in-Kind relief, and thoughts on any alternative tax incentives.
Tax reliefs on Benefits-in-Kind are already available for certain occupational health services. This consultation will test if expanding these reliefs or introducing new ones could be an effective lever to achieve greater Occupational Health provision, as well as thoughts on any alternative tax incentives. The consultation will determine if expanding tax incentives is an appropriate measure to boost Occupational Health provision.
This is all a key component of the measures in the 2023 Spring Budget to grow labour market participation, reduce economic inactivity and get more people into work. The Department is helping millions to return to work with inactivity falling by 360,000 since the peak of the pandemic.
Long-term sickness is currently the main reason people of working-age give for being economically inactive, but just under half of workers have access to Occupational Health services. Over 90% of large employers offer Occupational Health support, compared to under a fifth of small ones.
Occupational Health provision can help employers provide work-based support to manage their employees’ health conditions, leading to better retention and return-to-work prospects, and improving business productivity, which can be adversely impacted by sickness absence.
Secretary of State for Health and Social Care, Steve Barclay said: “High quality Occupational Health support in more workplaces would not only help to reduce economic inactivity, but it can lead to a healthier, happier workforce.
“The individual health benefits are clear and by focusing on preventative measures, we can reduce the burden on the NHS and help to bring waiting lists down, which is one of the government’s top priorities.”
Angela Rowntree, Occupational Health Physician for the John Lewis Partnership, said: “At John Lewis Partnership we are moving away from reactively managing sickness to proactively supporting our Partners’ health and wellbeing at work.
“Our founder, Spedan Lewis understood this when he launched an in-house health service for all Partners in 1929 – nearly 20 years before the NHS was established – and we’re proud to be part of his legacy today, providing advice and support to help our Partners achieve their potential in the workplace.
“We welcome this new focus on ensuring other businesses and their employees are able to access better workplace health.”
The Occupational Health consultation will run until 23:59 on Thursday 12 October .
