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.”