The government should establish universal in-work health support, to reduce the rising number of people leaving the job market due to illness and disability, argues a new report from the Fabian Society published today, Monday 15 September.
The research, entitled Nye’s Lost Legacy* and supported by public service union UNISON, says the introduction of a national occupational health service, would be a win for workers, employers and the country helping to get the UKs workforce back to better strength, supporting businesses and reducing government spending on welfare.
The current Labour government inherited a crisis of people leaving the workforce on health grounds and not returning, the report finds. In turn that has suppressed growth and pushed up the disability benefits bill.
Ministers see tackling inactivity as a key part of rejuvenating the economy and commissioned the Keep Britain Working Review, led by Sir Charlie Mayfield, which will present its final findings in the autumn.
The Fabian Society report argues the most effective way to tackle the issue is to intervene when people are still working, by promoting health and providing support. This will also make it easier for those who have left to return.
The number of working-age people reporting a disabling condition has increased by 4.3 million in the 14 years to 2023-24, the report’s analysis shows. Over the same period, pension-age disability has remained largely unchanged, indicating a problem specific to those of working age.
The research also shows 1.7m people reported illnesses caused or worsened by work in 2023-24. That marks a 44% increase on the equivalent number when Labour was last in government in 2010. For work-related mental illness, the figure has almost doubled in that time, increasing by 93%.
Employers are often unsure how to meet their responsibilities, the report finds, and there are inconsistencies in access to quality occupational health provision.
Support is designed to help prevent health problems at work and support workers who are ill. But just 45% of UK workers have access to occupational health through their employer, according to the report.
While employers already invest £900 million in occupational health provision, inconsistencies in quality mean just 27% of workers with long-term health conditions who used these services thought it helped their employer to provide support.
The report argues a national occupational health service would enable universal access to good quality help from both the public and private sector. This should be overseen by a new ‘occupational health authority’ sitting within the current Health and Safety Executive.
It would be part-funded by introducing a new health element to the proposed Growth and Skills Levy (due to replace the apprenticeship levy) and paid by the largest 10% of employers. The creation of a national system could iron out patchy provision, support SMEs, and give better value for money.
The report recommends further support and incentives for employers and workers to access services. These include help for employers experiencing high sickness rates, new duties for organisations dismissing staff on health grounds and clarification of rules around reasonable adjustments.
In addition, the report recommends enhancing statutory sick pay, so it is set at higher level than out-of-work benefits, meaning people are better off at work.
Report author and Fabian Society senior researcher Sasjkia Otto said: “Many employers spend a lot of money trying to keep their workforce healthy. But the UK’s failing occupational health system means they do not see return on their investment. Others fall short of the law because their duties towards workers are unclear and inconsistent.
A National Occupational Health Service would be a win for everyone involved – workers, business and the Government – ensuring everybody who needs it can access quality professional advice and support, and that workers are healthier and happier as a result.
“Nye Bevan, the architect of the NHS, was inspired by the free healthcare workers received in the mining community where he grew up. As people face new health pressures rooted in the workplace and beyond, it is time to revisit Nye’s lost legacy. The ongoing government review into healthy and inclusive work, led by Sir Charlie Mayfield, presents a generational opportunity to get this right.”
UNISON general secretary Christina McAnea said: “Prevention is always better than cure. Hundreds of thousands of people leave the workforce for preventable health reasons, often never to return. But tackling issues at an early stage so people are happier and healthier is the best way to keep them engaged in their work for longer.
“Establishing a national system to boost the economy is a no-brainer. It’s a win for workers, their employers and the UK economy as a whole.”
Sir Charlie Mayfield, from the Keep Britian Working review, said:
“I welcome the work the Fabian Society have done on this critical issue. Their diagnosis of the situation, and the impact it is having resonates and reinforces many of the findings of the Keep Britain Working review.”
ENDS
Notes to editors:
– The report, Nye’s Lost Legacy: towards a national occupational health service to keep people healthy in work is being published and launched today, Monday 15 September, and can be accessed here: https://fabians.org.uk/publication/nyes-lost-legacy/ Written by Sasjkia Otto, it is named after Aneurin ‘Nye’ Bevan’s original inspiration for the NHS, which came from an occupational health programme in his home community.
– The Fabian Society is Britain’s oldest political think tank. Founded in 1884, the society is at the forefront of developing political ideas and public policy on the left. The society is alone among think tanks in being a democratically constituted membership organisation, with around 7,000 members. It is constitutionally affiliated to the Labour party.
– UNISON is the UK’s largest union with more than 1.3 million members providing public services in education, local government, the NHS, police service and energy. They are employed in the public, voluntary and private sectors.
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