A looming economic storm is brewing in Britain, fueled by a staggering £85 billion sickness bill. This isn't just a financial burden; it's a crisis that threatens the very foundation of the UK's prosperity. A recent report paints a concerning picture: a growing number of people are out of work due to health issues, leading to what experts are calling an "economic inactivity crisis."
The numbers are alarming. Compared to 2019, there are now 800,000 more people out of work due to health conditions. This costs employers a whopping £85 billion annually. Former John Lewis boss Sir Charlie Mayfield, who led the review, warns that without intervention, the situation could worsen. However, he also offers a glimmer of hope, stating that this outcome is "not inevitable."
This issue affects a significant portion of the population, with one in five working-age individuals currently out of work and not seeking employment, according to the report commissioned by the Department for Work and Pensions. The report further projects that an additional 600,000 people could leave the workforce due to health reasons by the end of this decade if no action is taken.
Sir Charlie highlights that the financial impact extends beyond employers. Sickness-related issues, including lost productivity and sick pay, cost employers £85 billion a year. The broader economy suffers as well, experiencing weaker growth, higher welfare spending, and increased pressure on the National Health Service (NHS).
But here's where it gets controversial... Some business groups have raised concerns that Labour's Employment Rights Bill might inadvertently discourage the hiring of individuals with existing health conditions. This is a crucial point that sparks debate about balancing employee rights and employer responsibilities.
Sir Charlie emphasizes the interconnectedness of work and health, stating that they are "mutually reinforcing." Keeping people active and employed can actually contribute to better health outcomes. The state is currently spending £212 billion annually on illness-related inactivity. This figure represents nearly 70% of income tax revenue, and it is a result of lost output, increased welfare payments, and the strain on the NHS.
Encouraging people to remain in the workforce requires a shift in perspective, viewing health as a shared responsibility among employers, employees, and health services.
Loz Sandom, a 28-year-old with both mental and physical health conditions, shared their personal experience of struggling to find employment for a year. Despite having a degree in illustration and prior experience as a digital marketing executive, they've faced significant challenges. Loz points out that employers may not fully understand their "duty to provide reasonable adjustments." They emphasize the missed opportunity for employers, who could be benefiting from the skills and talents of many capable disabled individuals. Loz also highlights the need for support for employers.
In response to the report, the government has announced a major partnership with over 60 companies, including prominent names like Tesco, Google UK, Nando's, and John Lewis. Over the next three years, these companies will collaborate to refine workplace health approaches. The goal is to reduce sickness absence, improve return-to-work rates, and increase disability employment. The government aims to establish these changes as a voluntary certified standard by 2029.
Work and Pensions Secretary Pat McFadden views the report as a "win-win" for both employees and employers. The focus is on supporting individuals with health issues or developing disabilities to remain employed, which benefits both parties. Employees generally prefer to stay employed, and employers gain from retaining experienced staff.
Ruth Curtice, chief executive of the Resolution Foundation think tank, acknowledges the review's accuracy in identifying key challenges, including a culture of fear, a lack of support, and structural barriers to employment.
The CIPD, representing HR professionals, welcomes the government's preventative approach to workplace illness. However, its chief executive, Peter Cheese, stresses that the report's success hinges on businesses understanding the recommendations and the support from policymakers.
And this is the part most people miss... The report comes at a critical time, as the government is also moving forward with its Employment Rights Bill. Some businesses believe this bill could hinder growth. The proposed law includes a right to guaranteed hours and addresses zero-hour contracts. Chancellor Rachel Reeves is also working on a plan to guarantee paid work for young people who have been unemployed for 18 months, with potential consequences for those who decline the offer.
What are your thoughts? Do you agree with the report's findings, or do you have a different perspective on the challenges facing the UK's workforce? Share your opinions in the comments below!
