More than 300,000 workers leave the UK workforce every year due to poor health, a major new report has warned, with employers and policymakers failing to provide adequate support to keep people in work.
The Commission for Healthier Working Lives — a cross-sector group of policy experts, employers and worker representatives — has called for urgent reforms to prevent health-related job losses, which are costing employers £150bn annually and driving up welfare costs.
The report, published by the independent Commission for Healthier Working Lives and supported by the Chartered Institute of Personnel and Development (CIPD), the professional body for HR and people development, found that 8.2 million working-age people in the UK have a long-term health condition that limits their ability to work.
While some remain in employment, more than 300,000 leave their jobs every year and do not return to work, with musculoskeletal conditions and mental health issues being the most common causes.
A Growing Health Crisis in the Workforce
The Commission warns that once workers leave their jobs due to poor health, only 3% return after 12 months, placing them at greater risk of poverty, financial insecurity and long-term reliance on benefits. The findings raise serious concerns for employers and the UK economy, with rising levels of ill health now a major barrier to growth.
Among the report’s key findings:
- The number of working-age people with a long-term health condition has risen to 8.2 million, up from 15% of the population in 2013 to 20% in 2023.
- Public spending on incapacity benefits is projected to increase from £20.8bn in 2019/20 to £32.1bn by 2029/30.
- Only 48% of working-age people with a health condition are in employment, compared with 82% of those without.
- Young workers with mental health conditions are at particular risk, with an estimated 500,000 aged 16-24 now out of the workforce due to ill health.
- Some parts of the UK have far higher rates of health-related job losses, with nearly 10% of those leaving work for health reasons living in just 20 local authorities.
Employers Failing to Support Workforce Health
The report criticises the UK’s work and health system for failing to prevent job losses, describing it as doing “too little, too late” to keep workers with health conditions in employment. Among the biggest failures:
- Inadequate sick pay – The UK has one of the lowest rates of statutory sick pay in Europe, providing just £116.75 per week, leaving many workers financially vulnerable.
- Patchy workplace support – Only 45% of UK workers have access to occupational health services, and 29% of employers offer little or no health-related support.
- Rigid job structures – Many workplaces fail to offer flexible working or reasonable adjustments, leading to avoidable exits from the workforce.
- A failing welfare system – The Work Capability Assessment discourages people from trying to return to work, as they risk losing benefits if their attempt is unsuccessful.
CIPD: ‘Urgent Reform Needed to Prevent Job Losses’
The CIPD is backing calls for early intervention services, including independent advice for employers, worker advocacy and better access to rehabilitation services.
“With around 300,000 people a year dropping out of the workforce with a work-limiting health condition, the report highlights the need for urgent reform to support more people with health issues to remain in work,” Ben Willmott, head of public policy at the CIPD, said.
“The report also calls for a review of job design, accessibility and best practice in workforce health and retention. The CIPD’s research shows that line management capability is the main challenge employers experience in supporting health and wellbeing. Creating healthier work has to go hand-in-hand with building better-managed and more productive workplaces, with a strong focus on building people management competence.”
Willmott said workplace health strategies must focus not just on preventing job loss but also on ensuring high-quality, well-managed work environments.
“If the UK is to raise productivity and boost growth, we need a long-term workforce strategy underpinned by more skilled, healthy and fair work,” he said. “It’s only by a stronger focus on job quality to support people’s health that we will improve labour market participation.”
How Employers Can Stop Health-Related Job Losses
The report calls for a fundamental shift in how employers, government and the welfare system approach workforce health. Employers can act now in four key areas:
Introduce Early Intervention Strategies
- Identify and support employees with emerging health challenges before they reach crisis point.
- Train line managers to spot early signs of burnout, stress, or physical health struggles.
- Provide structured return-to-work support after long-term sickness absences.
Improve Workplace Health Policies
- Offer flexible working arrangements, including remote work, phased returns, and job redesign.
- Invest in occupational health services, including musculoskeletal support and mental health counselling.
- Provide fair sick pay, ensuring employees can recover without financial hardship.
Address Mental Health at Work
- Train managers to have constructive conversations about mental health.
- Offer Employee Assistance Programmes (EAPs) or other workplace counselling support.
- Reduce workplace stressors, such as excessive workloads or lack of job control.
Advocate for Policy Reform
- Support the review of statutory sick pay, making it more accessible and reflective of earnings.
- Engage with the Keep Britain Working review, shaping future government policies on workforce health.
- Encourage better integration between health and employment services, so workers do not fall through the cracks.
The Cost of Inaction
The Commission warns that without urgent reform, health-related job losses will continue to rise, reducing tax revenues, increasing benefit costs and undermining economic growth.
Modelling suggests that investing in early intervention support could keep 100,000 more people in work within five years, saving the government £1.1bn in benefit costs and lost productivity.
“Change cannot be delivered overnight, but a government serious about seeking growth and prosperity has little alternative but to commit to these ambitions,” the report says.
The challenge now is whether businesses and policymakers will act — or allow more workers to be forced out of the labour market by preventable health issues.