The British Chambers of Commerce (BCC) has called for urgent reforms to tackle the UK’s mounting workplace sickness crisis, warning it is costing the economy at least £130bn a year.
New figures show that around 7 per cent of the UK workforce – almost 2.8 million people – are currently out of work due to long-term sickness. That compares with 3.5 per cent in Japan, underlining the scale of the challenge facing the UK as it struggles to boost productivity and fill vacancies.
The BCC said the problem is undermining growth and worsening labour shortages. Its Future of Work Challenge Group report makes 16 recommendations, including tax breaks for businesses offering health services, reform of the fit note system, mental health and neurodiversity training for SME managers, and a wage subsidy scheme to support young people with long-term conditions into work.
Shevaun Haviland, director general of the BCC, said the issue is raised by business leaders in “every conversation” about barriers to growth.
“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… If the government is serious about growth, then we must turn the tide on this loss of talent.”
Official data from the Office for National Statistics shows that more than half (53 per cent) of those inactive due to long-term sickness cite depression, anxiety or related conditions. Research also suggests more than 300,000 people are leaving the workforce each year for health reasons.
The government has set a target of achieving an 80 per cent employment rate – requiring 1.5 million more people in work. But BCC warns that without decisive action, that ambition will be impossible to meet.
Haviland added:
“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.”
The report argues that if the recommendations are adopted in full, they could transform the landscape of workplace health, boosting individual wellbeing, employer resilience and national economic growth.
