The UK is facing a staggering £85 billion bill due to a growing number of sick and disabled individuals unable to work, sparking concerns of an impending economic crisis. This issue is not just a financial burden but a societal challenge that demands attention. But here's where it gets controversial: are employers doing enough to support these individuals, or are they inadvertently contributing to the problem?
A recent report reveals a concerning rise in people out of work due to health conditions, with 800,000 more individuals affected compared to 2019. This alarming trend is estimated to cost employers a whopping £85 billion annually, according to Sir Charlie Mayfield, former John Lewis boss. The situation could deteriorate further if left unaddressed, but Sir Charlie, who will spearhead a taskforce to address this issue, believes it is not an inevitable fate.
The taskforce's initiative has received a generally positive response, but some business groups argue that Labour's Employment Rights Bill contains provisions that may discourage hiring individuals with pre-existing health conditions. The report, commissioned by the Department for Work and Pensions, highlights that one in five working-age people are not only out of work but also not actively seeking employment.
Without intervention, the report warns, an additional 600,000 people could exit the workforce due to health reasons by the end of this decade. Sir Charlie emphasizes that the cost of sickness extends beyond employers, impacting the broader economy. He explains that sickness and staff turnover result in significant disruptions, costs, and loss of experienced workers for employers, while the country faces slower growth, increased welfare spending, and added strain on the NHS.
However, Sir Charlie also points out the positive correlation between work and health, stating that keeping people in work and active can contribute to better health. The state currently spends a staggering £212 billion annually on illness-related inactivity, nearly 70% of income tax, due to lost output, increased welfare payments, and additional NHS burdens. He suggests that viewing health as a shared responsibility among employers, employees, and health services could encourage more people to stay in work.
Loz Sandom, a 28-year-old with mental and physical health conditions, exemplifies the challenges faced by many. Despite their willingness to work, they have struggled to find a job due to employers' lack of awareness regarding their duty to provide reasonable adjustments. Sandom believes employers need support to understand and accommodate disabled individuals, ensuring they don't miss out on talented employees.
In response to the report, the government has partnered with over 60 companies, including Tesco, Google UK, Nando's, and John Lewis, to combat the growing health issues pushing people out of work. These companies will collaborate over the next three years to develop and refine workplace health strategies, aiming to reduce sickness absence, improve return-to-work rates, and increase disability employment.
The government aims to transform these initiatives into a voluntary certified standard by 2029. Work and Pensions Secretary Pat McFadden views the report as a positive step for both employees and employers, as it focuses on keeping people with health issues or disabilities in the workforce. This approach benefits employers by retaining experienced staff and employees who wish to remain employed despite health challenges.
Ruth Curtice, chief executive of the Resolution Foundation think tank, acknowledges the report's identification of key challenges, including a culture of fear, lack of support, and structural barriers to work, which contribute to Britain's economic inactivity problem. The CIPD, representing HR professionals, supports the government's preventive approach to workplace illness.
However, CIPD chief executive Peter Cheese cautions that the report's success hinges on businesses understanding and implementing its recommendations, with policy support at national and regional levels. As the government pushes forward with its Employment Rights Bill, some businesses express concerns that it may hinder growth, particularly with provisions like guaranteed hours and restrictions on zero-hour contracts. Additionally, Chancellor Rachel Reeves is proposing guaranteed paid work for young people who have been unemployed for 18 months, with potential consequences for those who decline the offer.
This situation raises essential questions: How can we balance the rights of employees with the needs of employers? Is the government's approach to employment rights beneficial for all, or does it create unintended consequences? Share your thoughts in the comments below, and let's explore these complex issues together.
