A better focus on workplace wellbeing could add around £1 billion to UK economy, report claims

Enhancing support for individuals with health conditions to remain in employment could lead to significant economic benefits for the United Kingdom, according to a new report from the Commission for Healthier Working Lives. The commission’s report on workplace wellbeing argues that a proactive and preventive approach to employee health could prevent at least 100,000 people from exiting the workforce over the next five years, potentially saving the government over £1 billion during this period.

The Trades Union Congress (TUC) has highlighted a concerning increase in work-related ill health. Their analysis indicates that the number of days lost due to work-related health issues has surged by a third since 2010, reaching 34 million days. This escalation translates to an economic loss exceeding £400 million each week, underscoring the pressing need for effective interventions.

Over 8 million working-age individuals in the UK report health conditions that limit the type or amount of work they can undertake. This includes 3.9 million people who are currently employed, marking an increase of 1.5 million since 2013. Alarmingly, approximately 300,000 people aged 16–64 leave the workforce annually due to work-limiting health conditions. Once out of the workforce, these individuals are nearly three times less likely to return to employment compared to those in good health.

The Commission for Healthier Working Lives advocates for a comprehensive strategy to address these challenges. Key recommendations to enhance workplace wellbeing include:

– Reforming Statutory Sick Pay (SSP): The current SSP system is less generous compared to other countries and often fails to support phased returns to work. Reforming SSP could provide better financial support and flexibility for individuals recovering from health issues.

– Enhancing Access to Occupational Health Services: Fewer than half of UK workers currently have access to occupational health services. Expanding these services, especially for small and medium-sized enterprises, could offer timely support to employees, preventing health-related job losses.

– Implementing a Caseworker-Led Support System: Introducing a caseworker-led service could provide independent advice to employers, advocacy for workers, and referrals to additional support services. This proactive approach aims to address health issues before they lead to workforce exit.

– Developing a ‘Back to Work’ Offer: Guaranteeing that individuals do not lose their benefits for at least 18 months while seeking employment could encourage more people with health conditions to re-enter the workforce without the fear of financial instability.

The UK government has acknowledged the urgency of these issues and is considering welfare reforms aimed at supporting workers with long-term illnesses. The Department for Work and Pensions (DWP) has expressed a commitment to reforming the welfare system to assist long-term sick and disabled individuals in finding employment, ensuring they receive necessary support while maintaining fairness to taxpayers. The DWP emphasises that without reform, more people will be excluded from job opportunities, negatively impacting both the economy and individual wellbeing.

Separately, the Institute for Public Policy Research (IPPR) has stressed that addressing the UK’s health crisis is vital for economic growth. The IPPR recommends investing £15 billion annually in reforms to enhance public well-being and national prosperity. Such investments could mitigate issues like reduced worker supply, lowered productivity, suppressed wages, strained public finances, and increased regional inequalities.