The Rise of Occupational Health

PIP Reform and the Rise of Occupational Health: What Business Needs to Know 

The UK’s welfare landscape could be on the cusp of significant change. This week, the government announced a review of Personal Independence Payments (PIP), a move that has already sparked widespread concern across disability rights groups, health professionals, and the political sphere. 

Under proposals being considered by the Department for Work and Pensions (DWP), the current PIP framework could be replaced with a new model, one that links support more directly to an individual's capacity for work. Among the changes under review are replacing regular cash payments with vouchers, grants, or other in-kind support, as well as re-evaluating eligibility criteria for people with mental health conditions. 

The move follows a dramatic 70% rise in claims over the last five years, particularly among those citing mental health difficulties. The government argues that this surge reflects a shifting relationship between health, disability, and work, prompting the need for a system better aligned with employment outcomes. 

Critics, however, warn that this shift could undermine financial support for vulnerable individuals, especially those whose conditions may not present in visible or traditionally "measurable" ways. Charities and advocacy groups have also raised concerns that tying financial aid more closely to work capability risks creating a system that penalises people for conditions beyond their control. 

While these changes are still under consultation and no formal decisions have been made, the direction of travel is clear: a more work-focused approach to disability support, with growing emphasis on prevention, early intervention, and workplace adaptability. 

 

A New Opportunity for Private Occupational Health Providers 

This potential shift in policy doesn’t just impact benefit recipients, it could significantly reshape demand across the private occupational health sector. As the state pulls back from traditional welfare delivery, employers and private healthcare providers are likely to become more central to the nation’s health and work agenda. 

Plimsoll’s latest Occupational Health Market Report offers a timely snapshot of how this sector is evolving, and where the greatest opportunities lie. 

The analysis paints a picture of a market already in transition. Increased public focus on mental health, employee wellbeing, and workplace resilience has driven strong underlying demand, even before the latest policy proposals emerged. Now, with a potential surge in early intervention and work-based assessments, occupational health providers may find themselves at the forefront of a much broader ecosystem. 

Key findings from the report reveal: 

• One in four companies in the market is growing at over 10% annually, indicating a wave of rising demand and rapid expansion. 

• Yet nearly 20% of firms remain financially vulnerable, suggesting that not all providers are equipped to capitalise on this shifting landscape. 

• Consolidation is accelerating, with financially stronger businesses acquiring smaller players to build scale and extend service offerings. 

As employers are expected to shoulder more responsibility for staff wellbeing, particularly in relation to mental health, private occupational health firms are ideally placed to fill the gap left by a more restrictive welfare system. Services such as psychological assessments, workplace adjustment plans, preventative care, and ongoing case management will likely see a sharp uptick in demand. 

 

Workplace Health: From Optional to Essential 

What once may have been considered a “nice to have” benefit is quickly becoming a business-critical investment. As the boundaries between welfare and work continue to blur, businesses that invest in proactive occupational health services will be better placed to navigate regulatory change, retain talent, and improve workforce productivity. 

For investors, too, this represents a clear opportunity. With demand surging and market consolidation underway, acquisition-ready businesses in this sector are increasingly attractive. Plimsoll’s analysis identifies not only which firms are growing, but also which are struggling—highlighting prime targets for investment or strategic partnerships. 

 

The Bottom Line 

Whether or not PIP reform materialises in its current form, the broader trend is clear: a policy shift towards employment-focused support and private sector delivery. For occupational health providers, the coming years could represent a defining moment of growth, visibility, and long-term opportunity. 

Want to understand which businesses are best placed to benefit, and which are at risk of falling behind? 

Explore Plimsoll’s full Occupational Health Market Report and get a clearer view of where the sector is heading.