Britain's Sickness Bill: An Economic Crisis Looming?
The UK is facing a potential economic crisis due to a rising number of sick and disabled individuals out of work. A recent report has shed light on this concerning issue, and it's time we delve into the details.
According to the report, there are now 800,000 more people absent from the workforce due to health conditions compared to 2019. This absence costs employers a staggering £85 billion annually, and the problem is only expected to worsen without intervention.
Sir Charlie Mayfield, the former John Lewis boss who led the review, believes this crisis is not an inevitability. He will head a taskforce aimed at helping individuals return to work, but there are differing opinions on the matter.
While the move has been generally well-received, some business groups have raised concerns about Labour's Employment Rights Bill. They argue that the bill includes disincentives for hiring people with existing illnesses, which could further exacerbate the issue.
The report highlights that one in five working-age individuals are currently out of work and not seeking employment. Without intervention, another 600,000 people could join this group by the end of the decade due to health-related reasons.
Sir Charlie emphasizes the broader economic impact of sickness, stating that it costs employers £85 billion annually through lost productivity, sick pay, and other issues. However, the impact extends beyond employers; it weakens the country's growth, increases welfare spending, and puts pressure on the NHS.
"For the country, it means weaker growth, higher welfare spending, and greater pressure on the NHS," he said. "Work and health are mutually reinforcing, and keeping people active and in work can help them stay healthier."
The state spends a significant amount, £212 billion per year, on illness-related inactivity. This equates to nearly 70% of income tax, covering lost output, increased welfare payments, and additional burdens on the NHS.
To address this issue, Sir Charlie suggests viewing health as a shared responsibility between employers, employees, and health services. He believes this approach could encourage individuals to stay in work and maintain their health.
Loz Sandom, a 28-year-old with mental and physical health conditions, shares their experience of struggling to find employment. They emphasize the importance of employers understanding their duty to provide reasonable adjustments for disabled individuals.
"It's a shame that employers are missing out on so many talented disabled people who can contribute greatly to the workforce. I'm not solely blaming employers; they need support too. There are measures we can take to help both employers and individuals," Loz added.
In response to the report, the government has announced a major partnership with over 60 companies, including Tesco, Google UK, Nando's, and John Lewis. Over the next three years, these companies will work towards developing and refining workplace health approaches to reduce sickness absence, improve return-to-work rates, and increase the disability employment rate.
The government aims to establish these changes as a voluntary certified standard by 2029. Work and Pensions Secretary Pat McFadden sees this as a win-win situation, keeping individuals with sickness issues or developing disabilities in work.
Ruth Curtice, the chief executive of the Resolution Foundation think tank, agrees that the review has accurately identified key challenges, including a culture of fear, lack of support, and structural barriers to work. She believes these are crucial factors in tackling Britain's economic inactivity problem.
The CIPD, representing HR professionals, welcomes the government's vision for a preventative approach to illness in the workplace. However, its chief executive, Peter Cheese, cautions that the report's success will depend on business understanding and support, as well as policy-maker backing at a national and regional level.
As the government moves forward with its Employment Rights Bill, some businesses express concerns about its potential impact on growth. The proposed law includes a right to guaranteed hours and aims to crack down on zero-hour contracts without work offers. Additionally, Chancellor Rachel Reeves aims to guarantee paid work for young people who have been unemployed for 18 months, with potential benefit stripping for those who decline the offer.
This report and the government's initiatives highlight a complex issue with far-reaching implications. It raises questions about the balance between employee rights, business incentives, and the overall health and prosperity of the nation. What are your thoughts on this matter? Feel free to share your opinions and engage in a discussion in the comments below!
