Health scheme to slice £300m off sickness bill

A full-scale occupational health scheme for the construction industry would cost £80m a year to run, the Health & Safety Executive (HSE) has been told.

But, if the scheme achieves the national target of a 50% reduction in the number of working days lost due to work-related ill-health and injury, this would represent a saving to the industry of £380m, giving a net benefit of £300m. Even if the scheme goes only halfway towards achieving the target, it would still bring a net benefit of £110m.

The cost-benefit analysis is described in a report presented to the HSE's construction industry advisory committee (Coniac).

Following a recommendation by consultants, Coniac is to press ahead with a regional pilot scheme, which is expected to cost between £1m and £1.3m and take up to two years.

Coniac is setting up an action forum to progress the health scheme. This is to be composed of up to half a dozen influential parties from within the industry, plus representatives from the HSE and the Department of Trade & Industry. It is expected to be in place by the beginning of May.

The forum's primary aim will be to establish a consortium responsible for the funding and management of the health scheme.

Financial support may include matching funding from the government.

The aims of the pilot will be to:

n Offer free advice on occupational health and health promotion for employers and workers.

n Provide free on-site risk assessments for employers.

n Identify specialist support and advise on its purchase.

n Provide the basis for a national scheme.