The Department for Work and Pensions has released initial details from their independent report titled ‘Keep Britain Working Review’, setting out the economic inactivity challenges facing the UK and how this compares to other countries.
They included findings that there are 8.7 million people with a work-limiting health condition, up by 2.5 million over the past decade, including 1.2 million 16 to 34-year-olds and 900,000 50 to 64-year-olds.
The figures also show 16 to 34-year-olds with mental health conditions are 4.7 times more likely to be economically inactive than their cohort.
They are part of the review’s Discovery Phase report, as former John Lewis boss Sir Charlie Mayfield examines the factors behind spiralling levels of inactivity, and how government and businesses can work together to tackle the issue.
Brett Hill, Head of Health and Protection at Broadstone, was among those quick to recognise that economic inactivity due to long-term sickness has been “a growing issue in recent years, significantly impacting UK productivity and the financial health of many businesses”.
He added: “The latest findings from the Keep Britain Working Review reveal the scale of the problem, with millions affected by work-limiting health conditions.
“It shows that there are 8.7 million people in the UK with a work-limiting health condition, up 41 per cent over the past decade. Young people aged 16 to 34 with mental health conditions are nearly five times more likely to be economically inactive compared to their peers, while millions are still waiting on record-high NHS waiting lists for consultations, diagnostics, and treatment.
“The government’s reforms are a step in the right direction, but the challenge of improving workforce health remains generational. Until access to healthcare improves and mental health support is strengthened, the UK will continue to face barriers in driving productivity and growth.
“Businesses are increasingly stepping in to address healthcare gaps left by the NHS, offering innovative employee benefits schemes focused around preventative care, and we expect this trend to continue as employers work to support their workforce and reduce the strain on the economy.”
Ben Willmott, head of public policy for the CIPD, said: “Today’s report shows we need more ambition from the Government to tackle health-related inactivity and create more opportunities for young people to be supported into sustainable employment.
“The Youth Guarantee is a positive step but not sufficient to tackle the collapse in apprenticeship provision for young people in recent years and the lack of effective employment support to underpin pathways into work.
It’s important that the Government continues to consult with employers as details on some of the key measures in the Employment Rights Bill are finalised
“Our research shows there is strong employer backing for a broader Apprenticeship Guarantee which would provide a guaranteed apprenticeship place for young people aged 16-24. Better training and employment opportunities for young people will also support efforts to improve their mental health and wellbeing.
“The Government must provide strong backing to the Keep Britain Working review and be prepared to invest, for example, to improve the provision of occupational health support to SMEs to keep people healthy and in work.
“Improving health at work and retention are also likely to require an increased focus by the Health and Safety Executive on tackling work-related stress, which is linked to mental health conditions like anxiety and depression, as well as increased risk of heart disease. The economic benefit of focusing on prevention and tackling sickness absence to reduce ill-health related economic inactivity is huge.
“It’s also important that the Government continues to consult with employers as details on some of the key measures in the Employment Rights Bill are finalised, to ensure they don’t have the effect of deterring employers from hiring candidates with health conditions or more development needs.”
Recruitment and Employment Confederation Director of Campaigns Shazia Ejaz felt that the UK faces “a twin youth crisis: one inside the workplace, with younger workers more likely to be laid off by employers managing rising minimum wages and higher employment taxes; and one outside”, with high levels of 16–24-year-olds not in education, employment, or training.
“The government’s goal of achieving growth must include tackling this. And that means avoiding policies that price young people out of their first jobs, such as unnecessarily broad reforms to the labour market that exacerbate the already inflated costs of doing business,” she said.
Separately, new research from Barnett Waddingham reveals nearly half of UK workers have taken extended sick leave in the past five years, with a fifth being out of work for between one to five months.
Four months since the Government’s white paper, the findings also reveal the measures that UK workers see as the most beneficial to help them remain in work.
More than a quarter believe a reduction in NHS waiting times through more in-person appointments would be most beneficial to them, 24 per cent want faster referrals to specialist care, and 22 per4 cent want more virtual NHS appointments.
From their employers, workers want better guarantees around communication of support and that it won’t leave them out of pocket. One in five want financial assistance for managing long-term health conditions, while 18 per cent said clearer workplace policies around sick leave and absence management would help them most.
Julia Turney, Partner and Head of Platform and Benefits said: “The message is clear: workers need better health support – both from employers and the NHS – to stay in or return to work. With economic inactivity rising, businesses and the government can’t afford to ignore the growing gaps in healthcare benefits, and mental health support. Flexible working, better health cover, and faster NHS services will all be part of the solution – but action is needed now.”
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