06 Nov 2025

Employers face £6bn bill to tackle UK’s growing worklessness crisis

Written by  Shani Brooks

Businesses across Britain are being urged to invest billions in staff wellbeing to combat the country’s mounting health-related worklessness problem. A government-commissioned review led by former John Lewis chair Charlie Mayfield has warned that tackling the crisis will require employers to spend around £6bn each year on improved workplace health support.

The Keep Britain Working report highlighted a sharp increase in the number of working-age adults unable to work due to long-term illness, with over nine million people now classed as economically inactive and nearly three million of them suffering from chronic health conditions. The review estimated the wider cost to the economy at up to £85bn annually, citing reduced productivity, greater welfare spending and pressure on the NHS.

Mayfield called for a “fundamental reset” in how health is managed in employment, urging employers, workers and government to share responsibility for keeping people in jobs. He argued that stronger occupational health services could significantly reduce sickness absence and improve return-to-work rates, offering potential benefits of up to £18bn a year for the economy.

More than 60 major companies, including British Airways, Tesco and Nando’s, have signed up to trial Mayfield’s recommendations. The review also proposed tax incentives and certification schemes to encourage businesses to prioritise workplace health as a core part of their operations.

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