The UK is teetering on the edge of an economic crisis, and it’s not just about inflation or Brexit—it’s about the staggering £85 billion price tag of sickness and disability keeping people out of work. But here’s where it gets controversial: while the government and businesses scramble for solutions, some argue that the very policies meant to help are actually making things worse. Let’s dive in.
According to a recent report led by former John Lewis boss Sir Charlie Mayfield, the UK is facing an 'economic inactivity crisis' that threatens its prosperity. The numbers are alarming: 800,000 more people are out of work due to health conditions compared to 2019, costing employers £85 billion annually. And this is the part most people miss: without intervention, another 600,000 could join them by the end of the decade. Sir Charlie, who’s now leading a taskforce to tackle this, insists this isn’t an inevitable fate—but it’s a steep hill to climb.
The issue isn’t just about lost productivity or sick pay. It’s about the broader economic toll: weaker growth, higher welfare spending, and increased pressure on the NHS. The state alone spends £212 billion a year—nearly 70% of income tax—on illness-related inactivity. Here’s the bold question: Are employers, employees, and health services doing enough to share the responsibility for keeping people healthy and in work?
Take Loz Sandom, a 28-year-old with mental and physical health conditions, who’s been out of work for a year despite having a degree and experience in digital marketing. 'I want to find a job,' Loz says, echoing the frustration of many. They point out that employers often don’t realize their duty to provide reasonable adjustments. 'It’s a shame,' Loz adds, 'because they’re missing out on fantastic disabled people who can do fabulous jobs.' But they also acknowledge that employers need support too—a point that’s often overlooked.
The government has responded with a partnership involving over 60 companies, including Tesco, Google UK, Nando’s, and John Lewis. Over the next three years, they’ll work on workplace health strategies to reduce sickness absence, improve return-to-work rates, and boost disability employment. The goal? A voluntary certified standard by 2029. Work and Pensions Secretary Pat McFadden calls it a 'win-win' for employees and employers, but not everyone is convinced.
Here’s the controversy: While the CIPD, representing HR professionals, welcomes the preventative approach, its chief executive Peter Cheese warns that success hinges on businesses understanding and backing these recommendations. Meanwhile, Labour’s Employment Rights Bill, which aims to protect workers, has been criticized by some business groups for potentially discouraging hiring people with existing illnesses. Is this a case of good intentions gone wrong?
Adding fuel to the fire, Chancellor Rachel Reeves is pushing to guarantee paid work for young people unemployed for 18 months—with the threat of benefit cuts for those who don’t comply. But is this carrot-and-stick approach fair, or is it too heavy-handed?
The Resolution Foundation’s Ruth Curtice sums it up: 'The review has identified a culture of fear, a lack of support, and structural barriers as key challenges.' But fixing this will require more than just policy changes—it’ll take a shift in mindset. So, here’s the question for you: Are we doing enough to support both employers and employees, or are we stuck in a system that’s failing both? Let’s hear your thoughts in the comments.
