Sick-note Britain has economy 'sliding into avoidable crisis,' review by ex-John Lewis boss finds

Ill health among workers is causing an "enormous" cost to employers, according to a major review conducted by former John Lewis boss Sir Charlie Mayfield.

The report found that poor workplace health is costing UK employers around £85 billion every year.

Sir Charlie said there is "broad recognition that Britain is facing a quiet but urgent crisis" with ill health now one of the biggest drivers of economic inactivity in the UK.

Read more: Rachel Reeves insists she will not resign as Chancellor as refuses four times to rule out tax rises

Read more: Government faces questions over tax rises after Reeves warns all must contribute

His review, published on Wednesday, told of a culture of fear among workers around ill health, a lack of an effective or consistent support system for employers and employees in managing health, and structural challenges for disabled people.

He has proposed a new approach where responsibility for health at work is shared between employers, employees and health services rather than being left to the worker and the NHS.

While Sir Charlie said employers must do more to help their employees, he warned that workers must play their part.

He wrote: "Work can be demanding. Setbacks are part of life. Health and work are not always easy partners, but they are mutually reinforcing."

Sir Charlie reiterated that 93 per cent of fit notes in England deem the patient “not fit for work” and are “often” extended without further consultation.

The Government has long argued too many people are being written off and out of work.

Previously published statistics show that more than one in five working-age people are now out of work and not looking for work – higher than many comparator countries – and that bringing the UK employment rate to 80 per cent would add two million people to the workforce.

There are 800,000 more people out of work now than in 2019 due to health problems and the review states "without decisive action to address this trend, projections show we are on track to add another 600,000 by 2030."

It adds that the increase in 16 to 34-year-olds with a mental health condition who are economically inactive due to long-term sickness rose by 190,000 (76 per cent) between 2019 and 2024.

The review said the economic cost at stake is "enormous," citing the estimated £85 billion a year in lost output to employers, as well as the additional burden in welfare payments and NHS demand of around £47 billion each year.

Sir Charlie said: "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."

The review called for the adoption of a workplace health provision, which it described as a non-clinical case management service supporting employees and line managers across a so-called healthy working lifecycle.

The Government said more than 60 employers – including the British Beer and Pub Association, Burger King, John Lewis and Google UK – have expressed interest in becoming so-called vanguard employers to pioneer the overall new approach.

Sir Charlie said: "Employers are uniquely placed to make a difference, preventing health issues where possible, supporting people when they arise, and helping them return to work.

"If we keep Britain working, everyone wins – people, employers, and the state.

"That’s why the action the Government is taking forward from my review is so important.

"I'm looking forward to working with them and with employers, large and small, to keep people in work, unlock potential and build a healthier, more prosperous Britain."

Business Secretary Peter Kyle said: "Many more people could remain in work if they receive the right support – and that's exactly what today’s action is about.

"That’s why Keep Britain Working is bringing together the expertise of leading UK businesses to help prevent ill health at work wherever possible, and to support those affected (to) stay in work."

James Watson-O’Neill, from national disability charity Sense, said he welcomed the report’s focus on encouraging employers to improve how they support disabled employees.

However, he warned the Government must not cut funding for the Access to Work scheme which supports disabled people into work and reiterated calls for welfare benefits not to be slashed.

The Society of Occupational Medicine also expressed support for the review’s recommendations, saying: "Helping people remain in good work is a win-win-win situation for employers, employees and for the nation."