Fixing Britain’s Work & Health Gap: What Employers Need to Know
The UK is facing a growing challenge that doesn’t make as many headlines as inflation or interest rates — but it has a huge impact on businesses: the rise in long-term sickness and economic inactivity.
A new government-commissioned review, led by Charlie Mayfield (former John Lewis chair and head of the Keep Britain Working review), highlights just how serious the issue has become — and why employers are being asked to step up.
A rising tide of worklessness
Right now, one in five working-age adults — over nine million people — are economically inactive, meaning they’re not in work and not currently seeking work.
For almost
three million, long-term sickness is the primary reason. That’s the highest figure ever recorded.
The fastest-growing group? Young adults — an early warning sign for the future health of the workforce.
The review estimates the total economic cost of this “quiet but urgent crisis” at up to £85 billion a year, driven by:
- Lost business output
- Higher welfare spending
- Extra strain on the NHS
It’s a problem affecting employers of every size, across every sector.
Why occupational health needs a reboot
Mayfield’s recommendation is clear: the UK needs a step change in how businesses support employee health.
He suggests employers collectively invest £6 billion a year in better workplace health measures — everything from early intervention to proper occupational health services.
The goal isn’t simply to help people return to work; it’s to stop people falling out of the workforce in the first place.
If these approaches were rolled out at scale, the review estimates annual benefits of up to £18 billion for the wider economy and public finances.
A new employer-led programme
To begin testing these ideas in the real world, more than 60 employers — including British Airways, Nando’s and Tesco — will take part in a three-year vanguard programme.
They’ll be working with regional mayors and small businesses to pilot and scale new models of workplace health support. The hope is that successful approaches can be rolled out nationally.
What this means for businesses
For employers, this isn’t just a policy conversation — it’s a real operational challenge:
- Long-term sickness is increasing
- Recruitment pipelines are tightening
- Productivity is under pressure
- Supporting staff wellbeing isn’t a “nice to have” anymore — it’s essential
The message from the review is that businesses will need to take a more active role in early support, prevention and retention.
The upside? Companies that invest in workplace health not only help the national picture — they also see reduced absenteeism, better morale and stronger long-term performance.
