A Government review has been published that says Britain’s workplace health crisis will cost around £6bn a year to fix.
Sir Charlie Mayfield, the former John Lewis chair, headed the review.
It reveals:
- One in five working-age adults are now out of the labour force – 800,000 more than in 2019 due to health reasons
- The cost of ill-health that prevents work equals 7% of GDP – nearly 70% of all income-tax receipts
- UK employment among disabled people stands at 53%, below leading OECD nations
- Employers lose £85 billion a year from sickness, turnover, and lost productivity
Sir Charlie will co-lead a Vanguard Taskforce with Ministers, bringing together employers, disabled people, workers’ representatives, and health experts.
The taskforce will work with Vanguards to develop the interventions and build the evidence for what works. This will inform wider reform by identifying what approaches could become part of the future employment landscape and drive adoption.
Sir Charlie said: “Britain is sliding into an avoidable crisis. Ill-health has become one of the biggest brakes on growth and opportunity. But this is not inevitable.
“Employers are uniquely placed to make a difference, preventing health issues where possible, supporting people when they arise, and helping them return to work. If we keep Britain working, everyone wins – people, employers, and the state.
“That’s why the action the Government is taking forward from my review is so important. I’m looking forward to working with them and with employers, large and small, to keep people in work, unlock potential and build a healthier, more prosperous Britain.”
Suzanne Caldwell, managing director of Cumbria Chamber of Commerce, said: “The workplace health crisis is damaging for individuals, employers and the economy.
“So this report is a hugely important contribution to tackling the issue and helping businesses access and retain a skilled workforce.
“As a chamber of commerce we’ve been actively engaged in production of this report through the British Chambers of Commerce (BCC).
“The BCC’s evidence to the review was clear – employers want to be part of the solution but need support to play their part.
“The report supports several long-standing chamber recommendations including exploring a Statutory Sick Pay rebate for SMEs and pooled access for employee health support in the workplace.
“But at a time of surging business costs, support and incentives are crucial to ensuring businesses of all sizes can be part of the solution – and address some of their own challenges in doing so.
“Alongside more access to workplace support, fixing the broken fit note system is crucial to breaking down barriers and raising awareness of solutions.
“Here in Cumbria we have particular challenges, with too small a workforce for our current needs and growth opportunities.
“So we really need to have people who could work active within that workforce.
“And to make sure people with disabilities and long term health conditions have genuine opportunities to get and stay in good jobs – and to progress in their careers.”
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said: “It’s now imperative that the Government works at pace to put the Mayfield Review recommendations into action.
“The UK’s economic future depends on the health and vitality of its workforce.
“But it is hard for many firms to see past a wall of rising costs, which presents a real barrier to better workplace health provision.
That’s why firms need support and, with the Budget just weeks away, a commitment to keeping a lid on business taxes is vital.
“The Chancellor must also use her statement to help boost productivity and make sure every business has a strong pipeline of skilled labour.
That should include, targeted youth employment support, reform of the apprenticeship levy and a long-term commitment to Local Skills Improvement Plans.
“In local communities across the country, chambers are convening employers of all sizes and sectors to find practical solutions to skills and workforce challenges.
“Engaging and supporting SME employers will be crucial to the successful implementation of the Mayfield proposals and resolving the health crisis.”
