Thousands of workers at risk of leaving employment due to ill health could be supported to stay in work under a new government-funded training programme aimed at small businesses.
The initiative will provide free occupational health and wellbeing training to around 5,000 line managers in small and medium-sized enterprises (SMEs) across England, funded by the Department for Work and Pensions (DWP). The scheme forms part of wider efforts to tackle workplace sickness and reduce the number of people falling out of employment due to health issues.
The move comes against a backdrop of more than 2.8 million people currently signed off work long-term in the UK, one of the highest rates among G7 countries. The government’s Keep Britain Working Review also found that around 800,000 more working-age adults are out of work due to sickness than in 2019.
For retailers and other small employers, the financial impact is significant. Replacing an employee lost to ill health costs businesses more than £11,000 on average, while each day of sickness absence is estimated to cost around £120 in lost profit.
The training, led by the Institution of Occupational Safety and Health (IOSH), will equip line managers with practical skills to spot early warning signs that staff may be struggling. These include persistent fatigue, changes in behaviour and increased absence, enabling managers to step in earlier and have supportive conversations about health and reasonable workplace adjustments.
Minister for employment Dame Diana Johnson said small firms often lack the tools to deal with health-related issues at work.
“Too often, small businesses lose skilled staff to health issues without the tools to support them – and that doesn’t help anyone,” she said. “This free training changes that. It gives line managers the confidence to have the right conversations and make the adjustments that could help keep people in work.”
Currently, only 21 per cent of SMEs provide training for line managers on improving employee health and wellbeing, compared with 76 per cent of large employers. However, evidence suggests the approach works: among SMEs that do offer such training, 79 per cent say it is effective in preventing employee ill health.
Tina McKenzie, policy chair at the Federation of Small Businesses, welcomed the funding, noting that many small firms struggle to afford wellbeing training amid rising costs.
“Employee welfare is a priority for small firms, but we know that training courses about it can be put out of reach at a time of rising cost pressures,” she said. “We welcome that around 5,000 SMEs should be better placed to look after the health of their employees, avoid sickness absence, and help them thrive in the workplace.”
Between January and March 2026, the DWP will fund up to £800,000 of IOSH Managing Occupational Health and Wellbeing training. The programme will help managers understand occupational health services and referral processes, support staff with physical and mental health conditions, and meet obligations under the Equality Act 2010 through early intervention and effective workplace adjustments.
The funding also supports the government’s wider Small Business Plan, alongside measures such as national insurance threshold changes, help with energy bills, free under-25 apprenticeship training, tougher action on late payments and lower electricity costs for manufacturers.
Managers will be able to pre-register for the free training until 31 December, with full registration opening on 2 January 2026. Delivery will take place across England between January and March 2026, with participation voluntary and based on business need.