Firms face an 'NHS tax' on work injuries

PROPOSALS for an 'NHS tax' on accidents at work would burden firms with crippling insurance bills, critics warned yesterday.

Under the plans, hospitals would for the first time be able to recover the costs of treating patients injured at work from their employers' insurers.

Business leaders warn that this would lead to increases of up to 10% on insurance premiums.

They claim a third of companies are already struggling to pay their existing insurance costs.

There are also concerns that the plans would fuel the compensation culture, because hospitals would only be able to recoup their costs if a patient is awarded cash for personal injury.

Critics say this could lead to them pressurising patients into pursuing claims.

David Frost, director general of the British Chambers of Commerce, said: 'We will continue to call for this ludicrous proposal to be dropped altogether.

'If liability is the key issue, one must wonder where the Government will stop.

'Is it planning to charge NHS costs to those who cause harm to themselves through risky activity, such as smokers or skydivers? This is an example of disjointed government at its worst.'

Ministers say hospitals could expect to recover £150m a year through the scheme, in addition to the £105m already saved through a similar scheme for those involved in road accidents.

Health Minister Rosie Winterton says it is 'unacceptable' that taxpayers should have to pay for the medical treatment of people injured at work because employers have not taken appropriate action to protect their workforce.

But Mr Frost added: 'This move will put up insurance prices for all businesses, not just those employers who have been negligent.'

A consultation period for the plans was launched in September and comes to an end today.