HR advice on Employee NFFW due to Illness?

[Aprisa]

I have a driver who has been with me for 12 years, health been declining over the past two years or so all caused by smoking 30 a day.
Been off work solid since Christmas and is diagnosed with COPD (lung disease used to be called emphysema) I have had an Occupational Health report done and this basically says he will never get better and is certainly not fit for the only work we have available.
I only employ drivers so there is no alternative position.
So here's the question:- I have been told by the Sage helpline that once Statutory sick pay finishes I basically have to give him notice based on him being unfit for work, they say I then have to either give him 12 weeks paid notice period or 12 weeks pay in lieu of notice?
I just want to make sure that I have no choice in this as basically he is not fit through his own actions and I did not wish to terminate his employment in the first place. I have had to employ someone else in his position as we cannot operate with a driver missing.
Is it not possible for me to say that once his sick pay runs out he will remain on the books until such time he leaves or is miraculously cured?
It's made all the worse by the change in law meaning I now do not get the sick pay back!
Thanks
Nick

[Aprisa]

essayer said:

What do Sage have to do with it? Some sort of paid HR advice related to your payroll?

Yes, part of their support but the advice was rather cautious and I was left unsure.