Britain is facing a potential economic crisis fueled by a soaring sickness bill, according to a new report and warnings from Sir Charlie Mayfield, former chairman of John Lewis. The cost of sickness to employers alone is estimated at £85 billion annually due to lost productivity and sick pay.
The independent report, commissioned by the Department for Work and Pensions, reveals that one in five working-age individuals are currently economically inactive and not seeking employment. Without intervention, the situation is projected to worsen, wiht another 600,000 people perhaps leaving the workforce due to health-related issues by the end of the decade.
“Work is generally good for health and health is good for work,” Sir Charlie told BBC Breakfast, highlighting the cyclical relationship between employment and wellbeing.
The increase in sickness absence is largely attributed to a “surge” in mental health challenges among young people and musculoskeletal problems – aches and joint pain – impacting older workers, leading them to exit employment.
Sir Charlie emphasized the broader economic consequences, stating, “for employers, sickness and staff turnover bring disruption, cost and lost experience. For the country, it means weaker growth, higher welfare spending and greater pressure on the NHS.”
The overall cost to the state, encompassing lost output, increased welfare payments, and strain on the National Health Service, reaches £212 billion per year – nearly 70% of total income tax revenue.
To address the issue, Sir Charlie advocates for a shift in perspective, viewing health as “a shared responsibility between employers, employees and health services.”
His taskforce will collaborate with General Practitioners (GPs), who have expressed difficulty in assessing an individual’s work suitability while simultaneously facing patient requests for sick notes.
