Instead of dwelling on the increase in economic inactivity and sickness, the next government should look at what is really driving long-term absence – the shortcomings in workplace health support and the broken sick pay system, argues Tina Woods.
The numbers are stark – according to the Office of National Statistics, the number of people who are economically inactive due to ill health has increased from 2.6 to 2.8 million; more than a fifth of the working-age population (aged 16-24) are neither in work nor looking for a job, and 4% of the UK overall population have long-term health issues.
With a general election nearing, there’s no better time for a stronger response to Britain’s sickness crisis.
Long term sickness
Sickest areas of the UK are getting sicker
There’s a clear link between economic participation and health in the UK, and yet none of the election pledges or manifestos put forward by any political party to date has identified health as a key pillar to driving prosperity. Instead, health policies are limited to “fixing the NHS”, rather than the wider determinants of health.
We need bolder and more radical solutions to help people stay healthy. This ultimately hinges on moving away from a broken sick care model and towards a more preventative health paradigm.
To achieve this, collaboration is key. All government departments need to work together with stakeholders, the NHS, businesses, and local authorities.
Harnessing the power of business
Businesses have a vital role in helping to prevent and minimise health problems, which will also address productivity and labour inactivity challenges dragging the UK economy down.
Political parties are overlooking the significance of the role businesses can play, and are missing opportunities to drive long-term system change and create a society focused on preventing illness in the first place.
Firstly, we need to create incentives for businesses, especially SMEs, to create healthier workplaces. For example making health insurance products more viable and accessible is key, and are especially valuable as a cost-of-living crisis rumbles on. Removing tax on health and wellbeing benefits such as EAPs can also help bring employees back to the workforce sooner.
Businesses also need guidance on how to improve health and wellbeing in the workplace. By introducing mandatory workforce health reporting, organisations can make changes based on evidence. For example, if one business has a workforce that has reported increased stress, interventions could include a tailored mental health strategy.
Is sickness or sick pay the problem?
Research by the CIPD has indicated that absences related to sickness are currently at a 10-year high. Yet, one-third of UK employees, up to 10 million people, are only paid £109.40 a week to take time off when ill, and they also receive no pay for the first three days they are off sick.
This is especially difficult for workers on low wages who are already struggling to make ends meet. Furthermore, almost two million employees receive no sick pay at all because they earn below the earnings threshold of £123 per week.
We need to increase statutory sick pay, abolish the lower earnings limit and ensure that statutory sick pay is payable from the first day of sickness.”
We simply must do better. UK sick pay is among the worst in Europe. We consistently fall further behind countries such as Denmark and Sweden which score highest, with Denmark offering 100% remuneration for sick employees for up to 26 weeks. Both countries are known for their generous work conditions, benefits, and overall healthier workforce.
Reforming sick pay in the UK is critical to combatting high presenteeism, absenteeism and low productivity, as well as vital for bolstering the UK’s standing in Europe and strengthening our position as an economically competitive country on the world stage.
We need to increase statutory sick pay, abolish the lower earnings limit and ensure that statutory sick pay is payable from the first day of sickness.
Another useful policy could be providing SMEs a refund on statutory sick pay costs, on the condition that they provide their employees with effective health services and return to work support.
Reforms to sick pay would have huge knock-on effects, such as aiding the government’s effort to drive down the number of people seeking out of work benefits, as well as relieving pressures on the NHS.
Prioritising health is building prosperity
For too long, the government have misdiagnosed the UK’s sickness problem and overlooked the links between health, the economy and prosperity.
Instead of dwelling on the damning figures on the UK’s economic inactivity, we must use them as fuel to look forward.
Any new government could make a powerful start to improving the health of the population. Armed with impactful priorities, a plan of action and a bold launch, there are clear opportunities to prioritise health for the benefit of us all.
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