UK workforce ill-health costs economy £87 billion annually

Research indicates that poor workforce health is costing the UK economy approximately £87 billion annually. A study commissioned by Simplyhealth and conducted by WPI Economics found that 52 percent of employees have delayed seeking medical care due to scheduling conflicts or concerns regarding taking time off work. This delay resulted in an average loss of 2.1 working days per employee over the past year.

The economic impact is driven largely by lost output from sickness absence (£51.6 billion) and reduced productivity when employees work while unwell, known as presenteeism (£20.1 billion). Other costs include £9 billion in sick pay and £6.3 billion related to recruitment and litigation.

In response, the UK government has introduced a Workplace Health System plan to help individuals with health conditions remain in or return to employment. The initiative aims to address the estimated £212 billion annual cost of ill-health-related inactivity. Currently, eleven regional vanguards, including various local councils and mayoral authorities, are testing different support models, such as pooled occupational-health services for small businesses and independent caseworkers within companies.