Fewer staff could be signed off work under new government plans to implement ‘fit notes' that inform employers what roles sick employees can still perform.

The scheme will replace the traditional sick note and aims to reduce the number of people who move from sick benefits to incapacity benefit.

"Helping people stay in work doesn't just have an economic imperative, it has a moral and social one too," said Health Secretary Alan Johnson.

More than 500 GPs are currently using the scheme and it is planned to implement it nationally by 2010.

Currently 2.6m UK residents claim incapacity benefit - at a cost to the economy of £16m a year.