Britain Sliding into Economic Crisis Over £85bn Sickness Bill
A recent report from former John Lewis boss Sir Charlie Mayfield highlights a troubling trend: Britain’s escalating economic crisis, partly fueled by an astounding £85bn annual sickness bill. The implications of this situation are profound, with several key points emerging:
– Economic Inactivity: The UK faces an economic inactivity crisis as 800,000 more individuals are out of work due to health conditions compared to 2019. This absence not only costs employers dearly but also jeopardizes national prosperity.
– Long-Term Financial Impact: If current trends continue, a 22-year-old who becomes unable to work due to health issues may lose out on £1 million over their lifetime. The urgency for intervention cannot be overstated.
– Growing Concerns: Currently, one in five working-age individuals is out of work and not seeking employment. Without proactive measures, an additional 600,000 people could leave the workforce by the end of the decade.
– Broad Economic Repercussions: Sickness costs UK employers around £85bn annually due to lost productivity, sick pay, and other indirect expenses. Sir Charlie emphasizes that this leads to slower economic growth, increased welfare costs, and mounting pressure on NHS services.
– The Health-Work Connection: According to Sir Charlie, maintaining employment will not only benefit businesses but also improve individual health. Work and health are mutually reinforcing, he stated.
– Government Initiatives: In response to the report, the government is partnering with over 60 companies, including major players like Tesco and Google UK. This collaborative effort aims to create a healthier workplace, reduce absenteeism, and boost the disability employment rate, with a goal of launching a voluntary certified standard by 2029.
As Ruth Curtice of the Resolution Foundation notes, overcoming a culture of fear and implementing supportive measures are crucial in addressing the driving forces behind Britain’s rising economic inactivity. Business groups, while supportive of initiatives, urge the careful consideration of new regulations and employment rights that could unintentionally hinder growth.
In conclusion, the UK’s fight against economic inactivity and the £85bn sickness bill requires concerted efforts from employers, government, and health services alike. By taking action now, we can mitigate the impending crisis and harness the potential of all workers, creating a healthier economy for everyone.