Britain's economy is facing a critical challenge as a growing number of people with health conditions remain out of work, posing a significant threat to the country's economic stability. According to a recent report, the UK is on the brink of an 'economic inactivity crisis,' with 800,000 more individuals out of work due to health issues compared to 2019. This situation is not only costly for employers, who bear a staggering £85 billion annual expense, but it also has far-reaching implications for the entire nation.
The report, authored by Sir Charlie Mayfield, a former John Lewis executive, highlights the urgent need for action. Without intervention, the problem is projected to worsen, potentially leading to another 600,000 people leaving the workforce due to health reasons by the end of the decade. Sir Charlie emphasizes that this crisis is not inevitable, and he will lead a taskforce to assist individuals in returning to work.
The issue extends beyond individual employers, as the state incurs a substantial £212 billion annual cost due to illness-related inactivity, which equates to nearly 70% of income tax. This includes lost output, increased welfare payments, and additional strain on the NHS. The report underscores the importance of viewing health as a shared responsibility among employers, employees, and health services.
Loz Sandom, a 28-year-old with mental and physical health conditions, exemplifies the challenges faced by many. Despite their willingness to work, finding employment has been difficult. Loz highlights a crucial aspect: employers often fail to recognize their duty to provide reasonable adjustments for individuals with disabilities.
The government has responded to the report by forming a partnership with over 60 companies, including major employers like Tesco, Google UK, Nando's, and John Lewis. This initiative aims to address the rising tide of ill-health and its impact on the workforce. Over the next three years, these companies will collaborate to develop and refine workplace health approaches, focusing on reducing sickness absence, improving return-to-work rates, and increasing disability employment.
The government's Employment Rights Bill, however, has sparked controversy. Some businesses argue that it may hinder growth by introducing a right to guaranteed hours and stricter regulations on zero-hour contracts. Additionally, Chancellor Rachel Reeves is proposing to guarantee paid work for young people who have been out of a job for 18 months, with potential consequences for those who refuse the offer.
The Resolution Foundation's Ruth Curtice emphasizes the need to address a culture of fear, a lack of support, and structural barriers to work. The CIPD, representing HR professionals, supports the government's preventative approach but stresses the importance of effective policy implementation at the national and regional levels.
As the government navigates these complex issues, the focus remains on finding solutions that balance the rights of employees and the needs of employers, ensuring a sustainable and prosperous future for Britain's economy.
