The UK sees a historic rise in working-age adults exiting the workforce because of long-term health issues, with 2.7 million now economically inactive. This issue strains the healthcare and welfare systems, contributing to a decline in employment levels. The government proposes reforms to counteract this trend, emphasizing the need for a comprehensive strategy to address underlying health and socioeconomic challenges.
The UK is witnessing an unprecedented rise in the number of working-age adults leaving the workforce due to long-term sickness, hitting record levels unseen since the 1990s, as reported by the Resolution Foundation. A staggering 2.7 million individuals are now economically inactive owing to long-term health issues, a trend that has been escalating since 2019.
The impact of the Covid-19 pandemic has further exacerbated this situation, particularly affecting the youngest and oldest segments of the workforce. This ongoing increase in sickness-related inactivity—stretching over 54 months even before the pandemic’s onset—has not only strained the UK’s healthcare and welfare systems but also contributed to a drop in the nation’s employment rate. Notably, the UK stands as the only G7 country yet to recover its pre-pandemic employment levels, with economic inactivity due to health reasons peaking at 2.8 million in October 2023 before a marginal reduction.
The Resolution Foundation’s analysis points to a significant surge in disability benefit claims, particularly those related to mental health disorders and musculoskeletal conditions, with claims for the Personal Independence Payment (PIP) increasing by 68% from 2020 to 2024. This trend is strikingly prominent among younger demographics, with a 138% rise in claims among those aged 16-17.
In response, the UK government, under Chancellor Jeremy Hunt, has proposed reforms aimed at reducing this trend of economic inactivity. These include stricter fit-to-work assessments and improved support for job seekers, with an ambitious target of incorporating an additional 200,000 individuals into the workforce. Furthermore, the government seeks to bolster the labour force by 300,000 through recent budget measures, demonstrating a multifaceted approach to tackle the issue.
However, the Foundation’s report and experts underline the necessity for a more comprehensive strategy that not only addresses the immediate concerns of workforce inactivity but also tackles underlying health and socioeconomic factors. Suggestions include improving infrastructure in key areas such as transport, childcare, and social care, alongside more targeted support for those affected by long-term health conditions.
This scenario underscores the complex challenge the UK faces in revitalizing its workforce while ensuring adequate support and opportunities for those hindered by long-term illnesses. With both younger and older workers significantly impacted, a balanced approach prioritizing health improvement and workforce reintegration is crucial for mitigating the long-term effects on individuals’ livelihoods and the broader economy.
