Britain faces an urgent economic inactivity crisis. Ill health and the barriers to work faced by disabled people largely drive this crisis.
Over 1 in 5 employable-age adults who are unemployed and not seeking employment are the most common cause of long-term health issues. As such, there are now 2.8 million people economically inactive due to health issues. This reflects 800,000 more than 7 years ago, in ’19. Projections reflect another 600,000 within the next 4 years by ’30 without action.
The disability employment rate is 52.8%. This figure is 29.5% below that of non-disabled people. Early indications suggest that this gap may be widening. Although serious, it’s a fixable issue. It may not be an issue that can be resolved by either government or employers acting alone, as collaboration between these entities is essential to create effective solutions that address the widening gap.
Everyone loses in the present system.
Individuals experience life-changing consequences. A 22-year-old unemployed due to ill health may lose over USD 1.32 million (£1) in lifetime earnings. The result is, besides the profound well-being impact, the loss of purpose and connection.
Employers lose USD 158.4 (£120) each day for each sick employee. They also face recruitment costs that exceed USD 14,520 (£11,000) for each replacement. Employers experience sickness absence at a 15-year high that totals USD 11.22 (8.5) billion annually.
The state experiences unsustainable costs of USD 279.84 (£212) billion annually (equivalent to 7% of GDP or nearly 70% of all income tax collections) through lost output. This figure excludes additional welfare payments besides the increased NHS burden.
Root causes
The Keep Britain Working (KBW) Review focused on the underlying causes in depth. This was through engagement from employers, suppliers, representative bodies, employees, and those with lived experience.
Tackling 3 persistent issues
A culture of fear is felt by employees. It may be different for employers, especially line managers. Such an environment may create distance between people. Furthermore, discourage safe and early disclosure. Besides these factors, constructive conversations and support are just when they may be needed most.
There is a lack of an effective or consistent support mechanism for both employers and their employees. The challenge is in managing health and tackling barriers experienced by disabled people. Such a lack of support may sometimes be compounded by a fit note system that probably isn’t working as intended, leading to further difficulties in obtaining necessary accommodations and support for disabled individuals in the workplace.
Disabled individuals face structural challenges. Such a lack of support may sometimes be compounded by a fit note system that probably isn’t working as intended. Structural challenges for disabled people. Such a lack of support creates barriers to starting and staying in work. When compared with international comparators, the UK lacks systemic levers. The focus may be in supporting disabled people at work. When compared with international comparators, the UK lacks systemic levers. The role may be in supporting disabled people at work. This leaves them disproportionately excluded and talent wasted.
