Britain sliding ‘into economic crisis’ over £85bn sickness bill, ex-John Lewis boss warns

by | Nov 5, 2025 | Politics

2 hours agoShareSaveEmer MoreauBusiness reporterShareSaveGetty ImagesThe number of sick and disabled people out of work is putting the UK at risk of an “economic inactivity crisis” that threatens the country’s prosperity, according to a new report.There were 800,000 more people out of work now than in 2019 due to health conditions, costing employers £85bn a year, according to the review by former John Lewis boss Sir Charlie Mayfield.The problem could worsen without intervention, but Sir Charlie, who will lead a taskforce aimed at helping people return to work, said this was “not inevitable”.The move has been broadly welcomed, but some business groups said Labour’s Employment Rights Bill included some disincentives to hiring people with existing illnesses.One in five working age people were out of work, and not seeking work, according to the report, which was commissioned by the Department for Work and Pensions but produced independently. Without intervention, another 600,000 people could leave work due to health reasons by the end of the decade.Sir Charlie said sickness cost employers £85bn a year through issues including lost productivity and sick pay, but it also cost the broader economy.”Work is generally good for health and health is good for work,” he told BBC Breakfast.He added that the rise in sickness was being driven by a “surge” in mental health issues among young people and muscular skeletal issues, aches and joint pain in older people that was leading them to leave work.”For employers, sickness and staff turnover bring disruption, cost and lost experience,” he said. “For the country, it means weaker growth, higher welfare spending and greater pressure on the NHS.”The state spends £212bn per year on illness-related inactivity, or nearly 70% of income tax, through lost output, increased welfare payments and additional burdens on the NHS.People could be encouraged to stay in work if health is viewed as “a shared responsibility between employers, employees and health services”, he said.Sir Charlie added his taskforce would work with GPs who say they find it difficult to judge whether or not a person is suitable to work while they are ill, but are asked to issue sick notes by patients.’I want to find a job’Loz Sandom has mental and physical health conditions which has made it difficult to find a job, and the last time they worked was a year ago. “I am willing to do the work, and I want to. I want to find a job,” said the 28-year-old, who has a degree in illustration and has previously worked as a digital marketing executive. With support from the charity Scope, Loz is looking for an employer willing to accommodate the adjustments they would need in a workplace.Loz said that part of the challenge was employers did not realise they had “a duty to provide reasonable adjustments”.”It’s such a shame because they’re missing out on so many fantastic disabled people that can do fabulous jobs.”And I’m not blaming employers entirely. They need support as well,” Loz added. “There are things that can be put in place to help employers, help save people.”Responding to the report, the government announced a major partnership with over 60 companies, many of them large employers, to “tackle the rising tide of ill-health that is pushing people out of work”.The companies include Tesco, Google UK, Nando’s and John Lewis.Over the next three years, they will “develop and refine workplace health approaches” which aim to “reduce sickness absence, improve return-to-work rates, and increase disability employment rate”.The government is aiming to develop these changes into a voluntary certified standard by 2029.Speaking to the BBC, Work and Pensions Secretary Pat McFadden said the report was a “win-win for employees and employers because it’s aimed at keeping people with sickness issues or deve …

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[mwai_chat context=”Let’s have a discussion about this article:nn2 hours agoShareSaveEmer MoreauBusiness reporterShareSaveGetty ImagesThe number of sick and disabled people out of work is putting the UK at risk of an “economic inactivity crisis” that threatens the country’s prosperity, according to a new report.There were 800,000 more people out of work now than in 2019 due to health conditions, costing employers £85bn a year, according to the review by former John Lewis boss Sir Charlie Mayfield.The problem could worsen without intervention, but Sir Charlie, who will lead a taskforce aimed at helping people return to work, said this was “not inevitable”.The move has been broadly welcomed, but some business groups said Labour’s Employment Rights Bill included some disincentives to hiring people with existing illnesses.One in five working age people were out of work, and not seeking work, according to the report, which was commissioned by the Department for Work and Pensions but produced independently. Without intervention, another 600,000 people could leave work due to health reasons by the end of the decade.Sir Charlie said sickness cost employers £85bn a year through issues including lost productivity and sick pay, but it also cost the broader economy.”Work is generally good for health and health is good for work,” he told BBC Breakfast.He added that the rise in sickness was being driven by a “surge” in mental health issues among young people and muscular skeletal issues, aches and joint pain in older people that was leading them to leave work.”For employers, sickness and staff turnover bring disruption, cost and lost experience,” he said. “For the country, it means weaker growth, higher welfare spending and greater pressure on the NHS.”The state spends £212bn per year on illness-related inactivity, or nearly 70% of income tax, through lost output, increased welfare payments and additional burdens on the NHS.People could be encouraged to stay in work if health is viewed as “a shared responsibility between employers, employees and health services”, he said.Sir Charlie added his taskforce would work with GPs who say they find it difficult to judge whether or not a person is suitable to work while they are ill, but are asked to issue sick notes by patients.’I want to find a job’Loz Sandom has mental and physical health conditions which has made it difficult to find a job, and the last time they worked was a year ago. “I am willing to do the work, and I want to. I want to find a job,” said the 28-year-old, who has a degree in illustration and has previously worked as a digital marketing executive. With support from the charity Scope, Loz is looking for an employer willing to accommodate the adjustments they would need in a workplace.Loz said that part of the challenge was employers did not realise they had “a duty to provide reasonable adjustments”.”It’s such a shame because they’re missing out on so many fantastic disabled people that can do fabulous jobs.”And I’m not blaming employers entirely. They need support as well,” Loz added. “There are things that can be put in place to help employers, help save people.”Responding to the report, the government announced a major partnership with over 60 companies, many of them large employers, to “tackle the rising tide of ill-health that is pushing people out of work”.The companies include Tesco, Google UK, Nando’s and John Lewis.Over the next three years, they will “develop and refine workplace health approaches” which aim to “reduce sickness absence, improve return-to-work rates, and increase disability employment rate”.The government is aiming to develop these changes into a voluntary certified standard by 2029.Speaking to the BBC, Work and Pensions Secretary Pat McFadden said the report was a “win-win for employees and employers because it’s aimed at keeping people with sickness issues or deve …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]