Ex-john Lewis Boss warns UK faces £85bn Sickness Bill and Economic Crisis

Sir Charlie Mayfield says ill health is driving millions out of work, costing employers and billions in the economy – but the problem is inevitable. “

Britain is at risk of “the challenge of economic inefficiency” as the number of sick and disabled people at work continues to rise, according to a government-led review led by Sir Charlie Mayfield, the former chairman of John Lewis.

The report warns that 800,000 more people were now out of work due to health conditions than in 2019, costing employers £85 billion a year in lost productivity, sick pay and staff. Without intervention, another 600,000 workers could leave the labor market by 2030.

“This is inevitable,” said Sir Charlie, as he launched a new job aimed at helping people return to work and cope with what he described as “economic health and economic unemployment.

The report, commissioned by the Department for Work and Pensions (DWP) but produced independently, found that a five-year-old who has been working for years is now out of work and does not want to change to twenty after improving participation.

Sir Charlie said illness costs the UK more than just lost business.

“Work is often good for life, and life is good for work,” he said. “For employers, illness and staff turnover bring disruption and lost experience. The country, it means weak growth, high spending and high pressure on the NHS.”

According to some addimates, sickness-related inefficiency costs the wider economy £212 billion a year – about 70% of annual tax receipts – in lost discharges, social security payments and additional health costs.

The Office for Budget Responsibility (OBR) expects spending on self-employed health and disability policies to reach £72.3 billion by 2029-30.

Mayfield said the move was prompted by a “sharp rise” in mental health conditions among younger workers and musculoskeletal problems – such as back problems and joint problems – among older workers.

His staff will work with GPS, who say they are looking hard at pressuring patients to release sick notes but are finding it difficult to assess whether someone can work in a changed role.

Business groups have widely welcomed the crackdown on workers but have warned that sections of the labor rights bill make it illegal to discriminate against people with pre-existing medical conditions.

This regulation includes hours and guaranteed limits on zero-hours contracts – measures that some traders fear will make flexibility jump hard.

Helen Dickinson, Chief Executive of the British Retail Consortium, said retailers are committed to supporting workers with poor health but “the government’s goals and policies are at odds.”

“While it encourages employers to invest in Work Health and provide flexibility, they risk making it more difficult,” she said.

In response to the report, the government announced a partnership with more than 60 large employers, including Tesco, Google UK, Nando’s and John Lewis, to block new health initiatives and improve reconciliation rates.

Over the next three years, these plans will form the basis of a national voluntary health system, which is expected in 2029.

EMPLOYMENT AND EMPLOYMENT PATT MCFADDENE said participation was “a win-win for workers and employers.”

“This is about keeping good, knowledgeable staff in the workplace and supporting people to stay healthy for longer,” she said.

Ruth Curaice, Victim’s Chief Executive Officer, said the review “clearly identified a culture of fear, barriers to support and the key issues behind Britain’s underperformance.

The CIPD, which represents HR professionals, welcomed the focus on prevention. Its chief executive, Peter Cheese, said the success of the report “will depend on how well its recommendations are understood by business and supported by national and regional policies.”

Dr Roman Raczka, President of the British Psychological Society, has moved to ‘rehabilitate the environment’ based on extremes, but warned that not everyone can return to work.

“Work itself can be a cause of poor mental health,” she said. “Those who are ill signatories deserve timely access to safe, compassionate care.”