Britain is facing a potential economic crisis, with a staggering £85 billion sickness bill threatening its prosperity. This issue is a ticking time bomb, and it's time we addressed it head-on.
A recent report has revealed that the number of sick and disabled individuals out of work is putting the UK at risk of an 'economic inactivity crisis'. The report, commissioned by the Department for Work and Pensions, highlights a concerning trend: there are now 800,000 more people out of work due to health conditions compared to 2019, costing employers a whopping £85 billion annually.
But here's where it gets controversial: some business groups argue that the Labour Employment Rights Bill, which aims to protect workers, may inadvertently discourage hiring people with existing illnesses. This bill, which includes a right to guaranteed hours and a crackdown on zero-hour contracts, is seen by some as a potential hindrance to growth.
The report further reveals that one in five working-age people are currently out of work and not seeking employment. Without intervention, this number could rise to 600,000 by the end of the decade, with health-related reasons being the primary factor.
Sir Charlie Mayfield, the former John Lewis boss who led the review, believes that sickness not only impacts employers but also the broader economy. He states, "For employers, sickness and staff turnover bring disruption, cost, and lost experience. For the country, it means weaker growth, higher welfare spending, and greater pressure on the NHS."
However, Sir Charlie remains optimistic, asserting that this situation is "not inevitable." He proposes a solution: viewing health as a "shared responsibility" between employers, employees, and health services. By doing so, people with health conditions can be encouraged to stay in work, benefiting both their health and the economy.
Loz Sandom, a 28-year-old with mental and physical health conditions, shares their experience: "I am willing to work, and I want to. I want to find a job." Loz, who holds a degree in illustration and has worked as a digital marketing executive, highlights the challenge of employers not understanding their duty to provide reasonable adjustments. "It's a shame because employers are missing out on so many talented disabled individuals who can excel in their roles." Loz adds, "I'm not blaming employers entirely. They need support too. There are measures we can put in place to help both employers and employees."
In response to the report, the government has announced a major partnership with over 60 companies, including Tesco, Google UK, Nando's, and John Lewis. Over the next three years, these companies will develop and refine workplace health approaches to reduce sickness absence, improve return-to-work rates, and increase the disability employment rate. The government aims to develop these changes into a voluntary certified standard by 2029.
Work and Pensions Secretary Pat McFadden emphasizes the win-win nature of this approach: "Keeping people with sickness issues or developing disability issues in work is beneficial for both employees and employers. These are experienced staff, and most people want to stay in work if possible."
The Resolution Foundation think tank's chief executive, Ruth Curtice, agrees, stating, "The review has accurately identified the key challenges: a culture of fear, a lack of support, and structural barriers to work. These are the issues we must overcome to turn the tide on Britain's economic inactivity problem."
The CIPD, representing HR professionals, welcomes the government's vision for a preventative approach to illness in the workplace. However, its chief executive, Peter Cheese, cautions, "The report's success will depend on how well these recommendations are understood and supported by policymakers and businesses at a national and regional level."
As the government moves forward with its Employment Rights Bill and Chancellor Rachel Reeves' initiative to guarantee paid work for young people out of a job for 18 months, the question remains: Can Britain tackle its economic inactivity crisis and create a healthier, more inclusive workforce? What are your thoughts on this complex issue? Feel free to share your opinions and insights in the comments below!
