UK in econ inactivity crisis due to ill health, hurdles for disabled

The United Kingdom has been sliding into an economic inactivity crisis, driven in large part by ill health and by barriers to work faced by disabled people, and this is holding back growth, damaging people’s life chances and costing the country billions in lost output and welfare payments, according to the final report of ‘Keep Britain Working Review’.

The report, published by businessman Andrew Charles Mayfield, was recently submitted by Pat McFadden, Secretary of State, Department for Work and Pensions, and Peter Kyle, Secretary of State, Department for Business and Trade.

“This is a serious but fixable problem. However, it can’t be solved by government or employers acting alone,” said a UK government release citing the report.

The UK has been sliding into an economic inactivity crisis, driven in large part by ill health and by barriers to work faced by the disabled, and this is affecting growth, the ‘Keep Britain Working Review’ report said.
It proposed a shift from a model where health at work is left to the individual and the NHS to one where it is a shared responsibility between employers, employees and health services.

Over one in five working-age people are now out of work in the country and not looking for work, higher than many comparator countries in Europe.

Increasing the UK employment rate to 80 per cent, bringing it in line with leading countries of the Organisation for Economic Cooperation and Development (OECD), would add 2 million people to the workforce, boost the economy and save taxpayers billions, the report noted.

“Instead, we have been going in the wrong direction with 800,000 more people out of work now than in 2019 due to health problems. Without decisive action to address this trend, projections show we are on track to add another 600,000 by 2030. The trends are against us—‘our society is getting older and living longer but becoming sicker sooner’,” it said.

The review found some persistent problems. The first is a culture of fear, that is felt by employees and, differently, by employers, especially line managers, creating distance between people and discourages safe and early disclosure, constructive conversations and support just when they are needed the most.

The second is a lack of an effective or consistent support system for employers and their employees in managing health and tackling barriers faced by disabled people.

The report, therefore, has proposed a fundamental shift from a model where health at work is largely left to the individual and the National Health Service to one where it becomes a shared responsibility between employers, employees and health services.

Employers will need to do more as they are uniquely placed to act on prevention, support rehabilitation and remove barriers for disabled people. They also stand to gain most from higher productivity and lower costs.

The government’s role is to reset the system: to enable and incentivise employers and employees to act, the review report added.

“Retailers recognise the importance of supportive workplaces. Many invest in programmes supporting employees with ill-health or disabilities and agree with the review findings that structural issues hold back companies from doing more or activity being more effective. They are keen go further and a number of retailers are already signed up to engage with the next stages of the review,” Helen Dickinson, chief executive at the British Retail Consortium, said

“But government goals and policies are at odds with one another. While encouraging employers to invest in workforce health and provide flexibility, they risk making it more difficult. In its current form, the Employment Rights Bill would make it harder for retailers to continue offering as many crucial flexible roles,” she remarked in a statement.

Jane Gratton, deputy director of public policy at the British Chambers of Commerce (BCC) said: “This report is a hugely important contribution to tackling the issue and helping businesses access and retain a skilled workforce. The BCC’s evidence to the review was clear—employers want to be part of the solution but need support to play their part.” 

“The report supports several long-standing BCC recommendations, including exploring a statutory sick pay rebate for SMEs and pooled access for employee health support in the workplace.  But at a time of surging business costs, support and incentives are crucial to ensuring businesses of all sizes can get involved,” he observed.

Fibre2Fashion News Desk (DS)