Britain's Hidden Crisis: The £85 Billion Cost of Sickness and Unemployment

The UK faces an alarming ”economic inactivity crisis” as 800,000 more individuals are out of work compared to 2019, primarily due to health issues. A report by Sir Charlie Mayfield, former John Lewis chairman, highlights that this trend costs employers £85bn annually and poses a significant risk to the nation’s economy. If left unaddressed, another 600,000 people could exit the workforce by the decade’s end, putting further pressure on productivity and welfare spending.

Currently, one in five working-age individuals is not seeking employment, leading to an estimated £212bn annual state expenditure on illness-related inactivity. Sir Charlie advocates that maintaining employment can improve health, viewing it as a shared responsibility among employers, employees, and health services.

The government has initiated a partnership with over 60 companies, including major names like Tesco and Google UK, aimed at tackling health issues that lead to job loss over the next three years. This initiative seeks to refine workplace health strategies to improve return-to-work rates and disability employment.

Pat McFadden, Work and Pensions Secretary, emphasizes the mutual benefits of keeping sick employees productive, stating that these individuals bring valuable experience. However, the report also reflects on the challenges faced by those with health conditions in securing jobs, as articulated by individuals like Loz Sandom, who highlight the need for employers to understand their duty to make reasonable adjustments.

The report underlines a culture of fear and the lack of support as barriers to addressing Britain’s growing economic inactivity. Additionally, as the government navigates potential legislative changes, concerns are raised by business groups regarding the impact of the Employment Rights Bill on growth. The broader goal is clear: creating a healthier workforce benefits not just individuals, but the entire economy.