The British Chambers of Commerce (BCC) says the UK must tackle
its status as the sick man of the G7 if it wants to grow the
economy.
Businesses want to see a major
shake-up of the UK's approach to ill-health which is excluding
people from work and hobbling the
economy.
Around 7% of the UK workforce, almost
2.8 million people, is currently out of work due to long-term
sickness, whereas the equivalent figure in Japan is just
3.5%.
The government's own calculations put
the lost economic output from this inactivity at a minimum of
£130bn, a figure which does not include welfare
payments.
The BCC is calling for joint action by
government and businesses to halt the rising tide of sickness and
help people suffering ill-health to get back into work or stay
there.
Among the recommendations in a new report, published today, the
BCC is calling for ministers to:
- Provide tax breaks for
health services that businesses provide for their
workforce
- Reform the fit-note system
so it supports both employers and employees to manage sickness
and a return to work.
- Offer support and incentives
for managers in SMEs to access mental health and neurodiversity
training.
- Introduce a wage subsidy
scheme to help young people with long-term health conditions to
get into work.
The report has been produced by the BCC's Future of Work
Challenge Group, drawing on expertise from businesses of all
sizes, academics and think tanks.
It highlights a workplace health crisis that is undermining
productivity, constraining growth and compounding labour market
shortages.
The government has set a target of becoming the fastest growing
economy in the G7, and as part of this aim wants to achieve an
80% employment rate. This means getting a minimum of 1.5 million
more people into work.
But research suggests more than 300,000 people are leaving the
workforce each year due to ill-health.
Data from the ONS also shows that over 1.35 million (53%) of
those inactive because of long-term sickness reported that they
had depression, bad nerves or anxiety.
Against this background, it will require a formidable effort by
both government and businesses to turn these figures around and
help more people into work.
But the BCC's new report features 16 recommendations, which if
enacted in their entirety, have the potential to transform the
landscape of workplace health.
Shevaun Haviland, Director General of the British Chambers of
Commerce, said:
“Every time I talk to business leaders about the issues they
face, I can guarantee within five minutes the conversation will
turn to their workforce.
“Whatever the business size, wherever it's based and whatever it
does, they tell me they can't find the people with the skills
they need or are losing ones they have.
“Sickness absenteeism is a growing concern. The UK has more than
nine million people who aren't working with one third of them
suffering from long-term health conditions.
This is a devastating loss of potential - for these individuals,
the businesses that need them and our local economies.
“If the government is serious about growth, then we must turn the
tide on this loss of talent. The evidence is also clear that
being in work is good for health.
“Employers recognise the problem and want to do more, but the
increasing cost and complexity of the landscape means many lack
the resources to respond quickly and effectively.
“What's needed is a new partnership between business and
government. One that delivers better access to high-quality
health support for people in work and a holistic approach to
helping the long-term sick back into employment.
“If we get the response to this right then the reward for
individuals, businesses and the economy will be immense.”
