By Staff, Agencies

Employers have been told in a landmark government review that fixing Britain’s health-related worklessness crisis will require them to spend £6bn a year on support for their staff.

In a major report before this month’s budget, Charlie Mayfield warned that businesses needed to play a more central role in tackling a rising tide of ill-health that is pushing millions of people out of work.

The former John Lewis chair, tasked with leading the government’s Keep Britain Working review, stressed the need for a major expansion in occupational health to prevent hundreds of thousands from leaving the workforce annually.

“We need to fix this,” Mayfield told the Guardian, proposing a shift from individual and NHS health care to a partnership between employers, employees, and health services.

“That is not a small move, but a big move, and a fundamental shift.”

Ministers are concerned by the sharp rise in working-age adults, particularly young people, leaving the workforce due to health issues.

One in five working-age adults, over 9 million people, are "economically inactive," with nearly 3 million out of work due to long-term sickness, a record high.

Mayfield's report estimates the UK's "quiet but urgent crisis" costs the economy £85bn annually, impacting the exchequer, businesses, and individuals.

Ministers are concerned about the rising cost of health-related welfare support, with the report highlighting the “unsustainable” impact of economic inactivity from ill-health on the state, including lost output, higher welfare spending, and NHS strain.

However, Mayfield’s report calls for a shared responsibility between employers, employees, and the government to improve workplace support, reduce sickness absence, boost return-to-work rates, and increase disability employment.

The report found a potential benefit of up to £18bn a year for the economy and exchequer if the recommendations were applied across the workforce.

The government said more than 60 employers – including household names like British Airways, Nando’s and Tesco – would take on Mayfield’s recommendations in a vanguard programme over the next three years.

The scheme, involving regional mayors and small businesses, aims to develop stronger workplace health strategies, though it may face resistance from business groups concerned about Labour’s tax and employment policies.

Bosses have urged Chancellor Rachel Reeves to avoid further tax hikes in her 26 November budget after last year's £25bn increase in employer NICs.

Mayfield acknowledged the tough business climate but stressed that investing in employee health would benefit both companies and the economy. He estimated a cost of £5-15 per employee monthly, totaling £6bn annually across the economy.

For some firms, this would mark a sharp rise in spending. However, others, particularly larger employers, already spend significant sums on workplace health.

Mayfield suggested that workplace health schemes could be government-certified, integrated with the NHS app, and reduce or replace fit notes from healthcare professionals.

Among other recommendations, Mayfield’s review also called on ministers to consider incentivizing businesses to invest in workplace health through tax cuts and rebates for paying sick pay to employees.