Long-term sickness blighting UK economy, warns BCC
Long-term sickness blighting UK economy, warns BCC
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The British Chambers of Commerce (BCC) has warned that the UK risks cementing its reputation as the “sick man of the G7” unless urgent action is taken to address rising levels of long-term sickness.
According to the BCC, almost 2.8 million people – around 7% of the workforce – are currently out of work due to ill-health, a figure double that of Japan, where just 3.5% of people are inactive for the same reason. The government estimates that the loss of output from this inactivity is costing the UK economy at least £130bn annually, not including welfare payments.
The BCC says this workplace health crisis is undermining productivity, constraining growth and compounding labour shortages at a time when the government has set itself the goal of making the UK the fastest-growing economy in the G7.
To achieve its 80% employment target, ministers need to get at least 1.5 million more people into work – yet research suggests over 300,000 people leave the workforce every year due to ill-health.
Data from the Office for National Statistics shows that more than half of those out of work due to long-term sickness – 1.35 million people – report suffering from depression, anxiety or other mental health conditions.
To tackle this crisis, the BCC’s Future of Work Challenge Group has published a new report today, outlining 16 recommendations to stem the tide of sickness absence and help more people return to, or remain in, employment.
Among the proposals are calls for government to:
- Provide tax breaks for health services offered by employers
- Reform the fit-note system to support both employers and employees in managing sickness absence
- Offer support and incentives for SME managers to access mental health and neurodiversity training
- Introduce a wage subsidy scheme to help young people with long-term conditions enter the workforce
The BCC says a new partnership between government and employers will be essential if the UK is to reverse current trends.
Shevaun Haviland, Director General of the British Chambers of Commerce, said: “Every time I talk to business leaders about the issues they face, I can guarantee within five minutes the conversation will turn to their workforce.
“Whatever the business size, wherever it’s based and whatever it does, they tell me they can’t find the people with the skills they need or are losing ones they have.
“Sickness absenteeism is a growing concern. The UK has more than nine million people who aren’t working with one third of them suffering from long-term health conditions.
This is a devastating loss of potential – for these individuals, the businesses that need them and our local economies.
“If the government is serious about growth, then we must turn the tide on this loss of talent. The evidence is also clear that being in work is good for health.
“Employers recognise the problem and want to do more, but the increasing cost and complexity of the landscape means many lack the resources to respond quickly and effectively.
“What’s needed is a new partnership between business and government. One that delivers better access to high-quality health support for people in work and a holistic approach to helping the long-term sick back into employment.
“If we get the response to this right then the reward for individuals, businesses and the economy will be immense.”
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