Welfare Reform, Workforce Change, and What Employers Need to Know
- Dr Lara Shemtob
- Apr 30
- 3 min read
Wales has a population of around 3.2 million people. Of those, approximately 400,000 are receiving either Personal Independence Payment (PIP) or Universal Credit with Limited Capability for Work-Related Activity. That means 1 in 8 people in Wales could be impacted by upcoming changes to the welfare system.
The UK Government's stated aim is to encourage more people into work. If these reforms are successful, the potential upside is significant — not only for individuals who may gain financial independence and social connection, but also for the broader economy, including businesses. However, there are open questions around how this transition will be supported, and whether adequate structures are in place to make it a success.
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What Does This Mean for Employers?
Regardless of how the public sector supports this shift, employers need to prepare now. The recruitment pool is likely to broaden, with more individuals living with long-term illness or disability entering or re-entering the workforce. This shift will reshape the composition of teams and workforces across sectors.
Employers who adapt early will be better positioned to attract and retain talent.
Here’s why it matters:
Diversity drives better business outcomes
A diverse workforce brings broader perspectives and a range of strengths and talents, and elevates organisational culture, making it more collaborative. Research shows that attracting and retaining a diverse workforce, including people with long term ill health and disability, is a business advantage.
Employers have legal and ethical responsibilities
Employers have a legal duty to provide reasonable adjustments to people with disabilities and to support employee health and safety at work. Proactively building inclusive policies protects both people and organisations.
Policy and culture make a difference
With the right workplace policies — from supportive and robust recruitment practices to addressing workforce need for reasonable adjustments — businesses can support employees effectively and sustainably. Policies lay the groundwork for culture and help team leaders be responsive when something at the work and health interface comes up.
Flexibility fuels productivity
Employers that understand how to leverage flexibility in their working practices to meet fluctuations in health and function are in a strong position to support people with long term ill health, maintain and build productivity. Often working practices can be more flexible than initially apparent.
Know where to lean on expertise
Remember - employers are not expected to diagnose or manage health conditions at work. Nor should employers expect employees to share medical information with them if they do not want to. This is where Occupational Health (OH) can help.
Where Occupational Health can help
Occupational Health professionals provide neutral, expert clinical guidance on how best to support someone with long term ill health or disability in their role. They bridge the gap between medical advice and practical action — helping both employees and employers navigate complex situations.
As welfare policy shifts and more people return to or enter work, this is not just a compliance issue — it’s a strategic one. The most forward-thinking employers will help shape a healthier and more productive future of work for their organisation. Thinking downstream of the welfare reforms will not only protects organisations, it will help them stay competitive.
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Insight Workplace Health can support you to navigate these changes. Contact us here or call us on 01792 321010 to find out more about our Occupational Health services.
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