A major report published this week calls for a new approach to support people in ill health before they are forced to leave work, in place of the current system where help is provided when people are on benefits or have left the workforce.
The report, from the Commission for Healthier Working Lives, is published as ministers discuss reforms to the welfare system ahead of a government green paper on health and disability expected in the coming weeks.
The Commission argues that supporting more people to stay in work is essential to increase economic growth, reduce the benefits bill and build a healthier UK.
With more than eight million people reporting a work-limiting condition, the deteriorating health of the workforce, particularly young people, presents an increasing risk to employers, public finances and people’s wellbeing.
The Commission, comprising employers, worker representatives and policy experts, concludes that the current system of support for people in poor health is fragmented, inconsistent and too focused on helping people after they have left work, rather than supporting those in work.
It argues that a new partnership between government, businesses and individuals is needed to deliver the long-term changes needed.
The report is published alongside new research highlighting significant concern among businesses about employee health, with 51% of employers saying they expect workforce health challenges to increase over the next five years.
8.2 million people – 20% of the working-age population – now report a long-term health condition that limits their ability to work, an increase of two million over the past decade
Employers cited higher workloads for team members (54%), reduced productivity among affected employees (40%), and increased stress and burnout for managers (39%) as the top three impacts of poor workforce health on their business.
Initial modelling for the Commission suggests that its proposals for a more proactive approach to employee health could keep at least 100,000 more people in work over the next five years. The report includes recommendations to:
- Review job design, accessibility and best practice in workforce health and retention, with a focus on priority sectors such as health and social care, transport and education, and tailored support to ease the burden on SMEs.
- Roll out a caseworker-led service to provide independent advice to employers, advocacy for workers and referrals to wider support, ensuring that action is taken before people fall out of employment.
- Review statutory sick pay to ensure it does more to support people back into work, coupled with help for businesses to manage any additional costs.
- Introduce a vocational rehabilitation benefit to support people for up to 12 months to help them transition back into employment.
- Introduce a bold new back-to-work offer guaranteeing that people will not lose their benefits for at least 18 months if they are trying to get back into work.
The report notes that 8.2 million people – 20% of the working-age population – now report a long-term health condition that limits their ability to work, an increase of two million over the past decade.
Analysis for the Commission shows that around 300,000 people a year move from being in work to being out of the workforce with a work-limiting health condition. Once people leave employment due to ill health, it is very difficult for them to return – only 3% of people with work-limiting health conditions go back to employment after 12 months out of work.
Losing work can have serious and lasting effects on people’s income, health and wellbeing, as their confidence, skills, and workplace connections decline over time – with young people particularly affected.
A healthier workforce is essential to delivering economic growth. Yet the current support for people in poor health isn’t working
The wider costs to government and the economy of health-related job loss are also significant and growing, acting as a brake on economic growth and leading to rising spending on incapacity benefits.
Sacha Romanovitch, Chair of the Commission for Healthier Working Lives, said: “Intervening early can help people with health conditions to stay healthy and in work. It’s vital that government and employers work in partnership to remove the barriers that force people with health conditions to leave work, so that individuals, businesses and our economy can thrive.
“We know that good work can help people feel a sense of purpose, social connection, and financial security. Too often, thinking on this can be binary and unhelpful. We know that many people with health conditions want to work but they need the right support, at the right time.
“To help people stay in work we need good job design, case worker-led support and a welfare system that truly makes work pay, however many hours they work. People are being let down by the current system and this has to change.”
Jo Bibby, Director of Health at the Health Foundation, said: “A healthier workforce is essential to delivering economic growth. Yet the current support for people in poor health isn’t working – for them or for employers. Nor have historic approaches to reducing benefits, with the welfare bill continuing to rise. A new approach is needed – one that helps people with health conditions to get back to work quickly and prevents them from leaving in the first place.
‘Taken together, the practical recommendations in today’s report would improve the advice and support available to employers, strengthen workplace support for employees and build a fairer benefits system. The prize is a healthier, more productive workforce and more opportunities for those currently excluded from work.’
The Commission’s report comes ahead of the government’s forthcoming health and disability green paper and the Keep Britain Working review, led by Sir Charlie Mayfield.
The full report here