Britain Sliding 'into Economic Crisis' Over £85bn Sickness Bill, Ex-john Lewis Boss Warns

The number of sick and abnormal group retired of activity is putting nan UK astatine consequence of an "economic inactivity crisis" that threatens nan country's prosperity, according to a caller report.

There were 800,000 much group retired of activity now than successful 2019 owed to wellness conditions, costing employers £85bn a year, according to nan reappraisal by erstwhile John Lewis leader Sir Charlie Mayfield.

The problem could worsen without intervention, but Sir Charlie, who will lead a taskforce aimed astatine helping group return to work, said this was "not inevitable".

The move has been broadly welcomed, but immoderate business groups said Labour's Employment Rights Bill included immoderate disincentives to hiring group pinch existing illnesses.

One successful 5 moving property group were retired of work, and not seeking work, according to nan report, which was commissioned by nan Department for Work and Pensions but produced independently.

Without intervention, different 600,000 group could time off activity owed to wellness reasons by nan extremity of nan decade.

Sir Charlie said sickness costs employers £85bn a twelvemonth done issues including mislaid productivity and sick pay, but it besides costs nan broader economy.

"Work is mostly bully for wellness and wellness is bully for work," he told BBC Breakfast.

He added that nan emergence successful sickness was being driven by a "surge" successful intelligence wellness issues among young group and muscular skeletal issues, aches and associated symptom successful older group that was starring them to time off work.

"For employers, sickness and unit turnover bring disruption, costs and mislaid experience," he said. "For nan country, it intends weaker growth, higher use spending and greater unit connected nan NHS."

The authorities spends £212bn per twelvemonth connected illness-related inactivity, aliases astir 70% of income tax, done mislaid output, accrued use payments and further burdens connected nan NHS.

People could beryllium encouraged to enactment successful activity if wellness is viewed arsenic "a shared work betwixt employers, labor and wellness services", he said.

Sir Charlie added his taskforce would activity pinch GPs who opportunity they find it difficult to judge whether aliases not a personification is suitable to activity while they are ill, but are asked to rumor sick notes by patients.

Loz Sandom has intelligence and beingness wellness conditions which has made it difficult to find a job, and nan past clip they worked was a twelvemonth ago.

"I americium consenting to do nan work, and I want to. I want to find a job," said nan 28-year-old, who has a grade successful illustration and has antecedently worked arsenic a integer trading executive.

With support from nan kindness Scope, Loz is looking for an employer consenting to accommodate nan adjustments they would request successful a workplace.

Loz said that portion of nan situation was employers did not realise they had "a work to supply reasonable adjustments".

"It's specified a shame because they're missing retired connected truthful galore awesome abnormal group that tin do fabulous jobs.

"And I'm not blaming employers entirely. They request support arsenic well," Loz added. "There are things that tin beryllium put successful spot to thief employers, thief prevention people."

Responding to nan report, nan authorities announced a awesome business pinch complete 60 companies, galore of them ample employers, to "tackle nan rising tide of ill-health that is pushing group retired of work".

The companies see Tesco, Google UK, Nando's and John Lewis.

Over nan adjacent 3 years, they will "develop and refine workplace wellness approaches" which purpose to "reduce sickness absence, amended return-to-work rates, and summation disablement employment rate".

The authorities is aiming to create these changes into a voluntary certified modular by 2029.

Speaking to nan BBC, Work and Pensions Secretary Pat McFadden said nan study was a "win-win for labor and employers because it's aimed astatine keeping group pinch sickness issues aliases processing disablement issues successful work".

"That's successful nan interests of employers because these are bully knowledgeable unit and it's successful nan interests of labor excessively because astir group want to enactment successful activity if they perchance can."

The Resolution Foundation deliberation tank's main executive Ruth Curtice said: "The reappraisal has accurately identified a civilization of fear, a dearth of support and structural barriers to activity arsenic cardinal challenges to flooded successful turning nan tide for Britain's economical inactivity problem – which is presently trending successful nan incorrect direction."

The CIPD, which represents HR professionals, welcomed nan government's imagination for a preventative attack to unwellness successful nan workplace.

But its main executive Peter Cheese said: "The report's occurrence will dangle connected nan grade to which these recommendations are understood by business successful driving affirmative outcomes and backed by argumentation makers astatine a nationalist and location level."

The study comes arsenic nan authorities tries to move up pinch its Employment Rights Bill – which some businesses opportunity will stifle growth.

The projected caller rule includes a correct to guaranteed hours and cracks down connected zero-hour contracts without nan connection of work.

As good arsenic that bill, Chancellor Rachel Reeves is aiming to guarantee paid work to young group who person been retired of a occupation for 18 months.

Those who do not return up nan connection could look being stripped of their benefits.