Britain is facing a stark warning: the country is teetering on the brink of an economic inactivity crisis, driven by a sharp rise in the number of people out of work due to ill health. On November 5, 2025, a comprehensive review led by former John Lewis boss Sir Charlie Mayfield put the issue bluntly—there are now 800,000 more people out of work because of health conditions than there were in 2019, a trend that is costing UK employers a staggering £85 billion a year, or about 7% of the nation’s GDP, according to reports from BBC, GB News, and The Independent.
The numbers are more than just statistics; they point to a growing crisis affecting individuals, families, and the broader economy. One in five working-age people is now out of work and not seeking employment, a figure that has alarmed policymakers and business leaders alike. The review, commissioned by the Department for Work and Pensions but produced independently, warns that without swift intervention, another 600,000 people could leave work for health reasons by the end of the decade—pushing the crisis from severe to catastrophic.
Sir Charlie Mayfield, who will head a new taskforce, emphasized that this trajectory is not set in stone. "Britain is sliding into an avoidable crisis. Ill-health has become one of the biggest brakes on growth and opportunity. But this is not inevitable," he stated, as quoted by The Independent. Mayfield’s message is clear: action now can turn the tide.
The financial implications are enormous. Sickness costs employers £85 billion annually through lost productivity and sick pay. For the state, the burden is even heavier—£212 billion per year is spent on illness-related inactivity, nearly 70% of all income tax revenue. The Office for Budget Responsibility forecasts that health and disability benefits for working-age people alone will rise to about £72.3 billion by 2029-30. These figures underscore what’s at stake if the issue is left unaddressed.
What’s driving this surge in economic inactivity? The report points to a "surge" in mental health issues among young people and musculoskeletal problems—aches and joint pain—among older workers. Sir Charlie highlighted that young adults are being hit particularly hard. "The growth in 16- to 34-year-olds with a mental health condition who are economically inactive due to long-term sickness is particularly concerning, having risen by 190,000 (76 per cent) between 2019 and 2024," he said, as cited by The Independent.
To tackle this challenge, Mayfield’s review recommends a fundamental shift in how workplace health is managed. Rather than leaving the responsibility solely with workers and the NHS, the report proposes a shared approach involving employers, employees, and health services. Among its recommendations is the adoption of a workplace health provision—a non-clinical case management service designed to support employees and line managers throughout a healthy working lifecycle. This service could be integrated with the NHS App, potentially reducing or replacing the current fit note system and offering earlier intervention and support.
More than 60 major employers—including Tesco, Google UK, Nando’s, John Lewis, the British Beer and Pub Association, and Burger King—have signed on to participate in a three-year effort to "develop and refine workplace health approaches". The government is aiming to turn these changes into a voluntary certified standard by 2029, with the hope of reducing sickness absence, improving return-to-work rates, and boosting the disability employment rate.
Work and Pensions Secretary Pat McFadden welcomed the review’s findings, stating to the BBC, "The report is a win-win for employees and employers because it's aimed at keeping people with sickness issues or developing disability issues in work. That's in the interests of employers because these are good experienced staff and it's in the interests of employees too because most people want to stay in work if they possibly can." He added, "Business is our partner in building a productive workforce – because when businesses retain talent and reduce workplace ill health, everyone wins."
Yet, not everyone is convinced that the government’s current legislative approach will help. Some business groups have expressed concerns that Labour’s Employment Rights Bill, which includes a right to guaranteed hours and seeks to crack down on zero-hour contracts, may actually disincentivize the hiring of people with existing illnesses or disabilities. Helen Dickinson, chief executive of the British Retail Consortium, told the BBC that while retailers understand the importance of supportive workplaces and already invest in programs to help workers with ill health or disabilities, the government's goals and its policies are "at odds with one another." She warned, "While encouraging employers to invest in workforce health and provide flexibility, they risk making it more difficult. In its current form, the Employment Rights Bill would make it harder for retailers to continue offering as many crucial flexible roles."
For individuals struggling with health conditions, the challenges are deeply personal. Loz Sandom, a 28-year-old with both mental and physical health conditions, described to the BBC the difficulty of finding an employer willing to accommodate necessary workplace adjustments. "I am willing to do the work, and I want to. I want to find a job," Loz said. They added, "It's such a shame because they're missing out on so many fantastic disabled people that can do fabulous jobs. And I'm not blaming employers entirely. They need support as well. There are things that can be put in place to help employers, help save people."
The review’s recommendations have been broadly welcomed by think tanks and HR professionals. Ruth Curtice, chief executive of the Resolution Foundation, remarked that the review "has accurately identified a culture of fear, a dearth of support and structural barriers to work as key challenges to overcome in turning the tide for Britain's economic inactivity problem – which is currently trending in the wrong direction." Peter Cheese, CEO of the CIPD, which represents HR professionals, said success will depend on how well businesses understand and implement the recommendations, and how strongly policymakers support them at both national and regional levels.
Chancellor Rachel Reeves has also weighed in, aiming to guarantee paid work to young people who have been unemployed for 18 months, with the threat of benefit sanctions for those who refuse. The government’s hope is that, by combining legislative changes with employer partnerships and a new shared-responsibility approach, the nation can stem the tide of economic inactivity before it becomes unmanageable.
As the UK grapples with these challenges, the stakes are clear: the cost of inaction is measured not just in pounds and pence, but in lost opportunities, weakened growth, and diminished quality of life for millions. The next steps—by government, employers, and workers alike—will determine whether this looming crisis can be averted or whether it becomes a defining problem for a generation.
