WA61

"Employers to pay" for workplace accidents

Health Minister Rosie Winterton has announced plans to extend the NHS Injury Costs Recovery scheme, allowing the NHS to reclaim its costs for treating patients in all cases where personal injury compensation is awarded.

Ms Winterton said, 'This policy will encourage employers to take steps to prevent employees being injured … It is unacceptable that taxpayers have to pay for the medical treatment of someone injured at work simply because employers fail to take adequate steps to protect their workforce'.

However, the British Chambers of Commerce (BCC) described the news as 'a blow for business', and warned that insurance companies are likely to pass on the costs to businesses by increasing liability insurance premiums.

According to a recent BCC survey on the cost of employers' liability insurance, 74% of firms have seen an increase in the cost of cover over the last year, with one third seeing increases of between 20% and 50%.

Almost a third of firms reported that the high cost of liability insurance is threatening the long-term viability of their business.

David Frost, BCC Director General, said, 'Business already pays for the NHS through general taxation and national insurance contributions. Indeed, the Government's NI rise in last year's Budget was specifically designed to fund investment in the NHS'.

A consultation on the draft regulations will close on 17 December.

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