300,000 people leave the workforce and report ill health annually

New analysis shows that each year around 300,000 people aged 16-64 have left the workforce and report having a work-limiting health condition. Once out of the workforce, these individuals are nearly three times less likely to return to employment than those in good health.

The findings are part of an interim report by the Commission for Healthier Working Lives, which was established by the Health Foundation to address the growing challenges of working-age ill health. Drawing on insights from employers, experts and the public, the report highlights the need for a new approach to help people with health conditions remain in or return to work.

In addition to 4 million working-age people out of work with ill health, 3.9 million people with work-limiting health conditions are now in employment – an increase of 1.5 million since 2013. However, workers with work-limiting health conditions are still three times more likely to leave the workforce than those in good health.

The report notes that support for workers with health conditions often comes too late or is absent. Fewer than half of UK workers have access to occupational health services, the fit note system is ineffective and statutory sick pay is less generous than in other countries. While many employers want to help, they often lack the capacity or knowledge, especially smaller businesses.

A new approach is needed that links reforms to employment rights and health-related benefits with a broader strategy to support a healthier workforce. Ahead of the Budget and an employment white paper in the autumn, the report outlines immediate steps the government can take:

• Use the Employment Rights Bill to reform statutory sick pay to better support phased returns to work, and make the system more generous.
• Clear the growing backlog of Access to Work claims so that people with disabilities and health conditions receive the support they are entitled to without delay.  
• Conduct a review of working practices in the public sector, parts of which report some of the highest rates of work-related ill health.   
• Commit to continued funding for local employment support services for people who are already out of the labour market.
• Stop the previous government’s proposed changes to work capability assessments, which risk increasing financial hardship without improving employment outcomes.
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Sacha Romanovitch OBE, Chair of the Commission for Healthier Working Lives, said:

“When people have secure, fulfilling work, they can support their families and contribute to society, which in turn benefits their health. The evidence in this report shows that, despite common misconceptions, many people with long-term health conditions are eager to work and can contribute meaningfully to the economy, yet often lack the support and flexibility they need.

“We’re encouraging employers, workers, and practitioners to share their stories with us and help shape a new approach to creating a thriving workforce. If we intervene early and provide the right support, people can stay at work for longer. That is a goal that is great for individuals, great for businesses and great for society.”

Jo Bibby, Director of Health at the Health Foundation, said:

“Addressing the UK’s work and health challenges is key to the government’s economic growth ambitions. Achieving this requires a radical shift in how we support the growing number of people who want to work but are held back by their health.

“While it is important to acknowledge current fiscal constraints, ignoring the long-term costs would be equally short-sighted. The increasing number of people with work-limiting health conditions – especially mental ill health among young people – risks a massive loss of potential for decades to come.

“Inaction is not an option: government and employers must work together to build the necessary infrastructure to prevent health-related job loss, support workforce health and, in turn, safeguard our economy.”  

The Commission’s full recommendations, to be published in spring 2025, will outline how employers and government can work together to manage workforce health proactively, offer early support to help people stay in work and provide clear pathways for those seeking to enter the labour market.