Britain is losing an estimated seven per cent of GDP every year due to workplace illness, according to a major review warning the country is “sliding into an avoidable crisis”.
Sir Charlie Mayfield, the former John Lewis chief executive, said rising ill health and work absences pose a growing threat to economic growth and national prosperity.
His review shows that 800,000 additional workers have left employment since 2019 because of health problems.
Projections suggest an additional 600,000 could leave the workforce by 2030 without action.
Sir Charlie described the situation as a “quiet but urgent crisis”, identifying ill health as a key driver of economic inactivity across the UK.
He warned that without intervention, pressures on businesses, public services and household incomes will continue to intensify.
The review estimates the annual cost to British businesses at £85billion due to lost productivity.
It also notes wider pressure on public spending, with welfare payments and NHS demands adding £47billion a year.
The number of economically inactive 16 to 34 year olds with mental health conditions rose by 190,000 between 2019 and 2024, a 76 per cent increase.
Workplace illness is costing Britain around seven per cent of GDP annually, a major review has warned
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Disabled workers face persistent barriers to employment, with only 53 per cent in work.
The review concludes that this gap reduces participation and limits economic output.
Sir Charlie also raised concerns about the current fit note system.
He described fit notes as “often problematic”, arguing they can create distance between employers and employees and delay support.
General practitioners issue most fit notes, but many lack specialist occupational health training.
The ex-John Lewis boss raised concerns about the current fit note system
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GETTYThe review found 93 per cent of fit notes in England state individuals are unfit for work, and many are extended without further medical assessment.
Sir Charlie said that while supportive workplaces are vital, “so does personal responsibility”, warning that withdrawing from work can lead to “detachment and dependency”.
The review proposes a fundamental overhaul of workplace health support.
He recommends a new workplace health provision, offering non-clinical case management to help employees and employers manage health issues throughout the working lifecycle.
He also suggests linking the system with the NHS App, reducing reliance on traditional fit notes and improving communication between employers, employees and health services.
The approach aims to move from reacting to illness to early intervention and long-term support.
The Government has recruited more than 60 major employers to trial the reforms, including the British Beer and Pub Association, Burger King, John Lewis and Google UK.
The three-year programme will focus on mental health support, retaining older workers and improving employment opportunities for disabled people.
Work and Pensions Secretary Pat McFadden backed the findings
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GB NewsWork and Pensions Secretary Pat McFadden backed the findings.
He said the message was “crystal clear: keeping people healthy and in work is the right thing to do and is essential for economic growth”.
Business Secretary Peter Kyle added: “Many more people could remain in work if they receive the right support.”
He also claimed that partnership between Government and employers would be central to maintaining a productive workforce and boosting economic performance across the country.