Rising workplace sickness costs an extra £30bn a year as days off doubled since 2018

A report has found that rising workplace sickness is costing UK businesses an extra £30bn a year, with the number of sick days doubled since 2018.

Employees now report sick an average of 6.7 days per year, compared to 3.7 days six years ago.

Analysis by the Institute for Public Policy Research found that the annual cost of staff absence has risen by £5 billion over this period.

However, the biggest cost to businesses comes from ‘presenteeism’, where Britons turn up to work despite being ill and unable to perform to their best, the think tanks claim.

According to the report, the average worker now loses the equivalent of 44 days of productivity each year due to illness.

This is an increase from the 35 days since 2018. The extra quiet days are costing profits by £25 billion a year, researchers found.

Workers in the UK are among the least likely to take sick days, compared with other OECD and European countries.

But according to the IPPR, they are more likely to continue working despite illness.

It is emphasized that people with certain health problems can benefit from ‘good’ work.

But if poor work conditions or limited access to sick pay forces people to continue working despite their illness, it can delay recovery time, increase the risk of further illness and spread the disease to others, it adds.

The report finds that people from ethnic minorities, those in lower-quality jobs and workers without formal qualifications are more likely to continue working despite poor health.

The IPPR wants a new tax incentive for companies that commit to improving the health of their staff, a ‘do no harm’ duty for employers and mandatory reporting on employee health.

It describes the UK as ‘the (literally) sick man of Europe’, with poor quality jobs, overconsumption of unhealthy food, smoking, gambling and a low rate of investment, all of which have implications for public health.

And it is heartening that increasing disease will lead to people living longer in poor health, and that this also poses a ‘serious financial threat’.

Citing analysis by the Office for Budget Responsibility (OBR), the report says economic inactivity due to sickness could lead to a £8.9 billion drop in annual tax revenues, as well as increased spending on social security and the health service.

Dr Jamie O’Halloran, senior researcher at IPPR, said: ‘Too often, British workers are pressured to work while sick when it is not appropriate to do so, damaging their wellbeing and reducing productivity.

‘This could be due to poor working culture, poor management, financial uncertainty or simply because employers in the UK lack insight into long-term conditions.

‘Our demonstration of the ‘hidden’ productivity costs of working while sick should bring about a change in approach.

There are now 2.8 million people inactive due to long-term illness, with this number increasing by 127,000 in the past year alone

‘We must strive to ensure that the work we do is good for our health, that we have time to recover when needed, and that businesses both contribute to and benefit from public health.

“This would protect workers, increase profits and deliver growth.”

Wes Streeting took on the NHS in his first speech as Health Secretary, promising to get people off benefits and NHS waiting lists and back into work.

Currently, 2.8 million people are inactive due to long-term illness. This number has increased by 127,000 in the past year alone.

Mr Streeting has called on the Department of Health and Social Care to focus more on stimulating economic growth. He has made it his mission to reduce waiting times in the NHS, so that people are less likely to be off sick with physical or mental health problems.

He has also said he will place more emphasis on public health and prevention than the previous administration, to prevent people from getting sick in the first place.

The IPPR report also says the economy needs to shift from junk food and alcohol to products and services that promote health.

It adds: ‘We need to think more carefully about how investments – including where our pensions are invested – promote health and support the health industries of the future.’

Kieron Boyle, Chief Executive of the Impact Investing Institute and IPPR Commissioner, said: “Businesses and investors are increasingly seeing health as an asset, not a cost.

“This report is a blueprint for their role in creating a healthy and prosperous economy for all.”

Paul Devoy, CEO of Investors in People, an organisation that accredits workplaces with good company cultures, said: ‘All the evidence shows that there is a clear link between a positive company culture of organisational wellbeing and productivity and sustainable organisational performance.

‘Focusing on systematically leading, supporting and improving a culture of wellbeing will deliver long-term benefits to all employers who care about their employees.’

A Department for Work and Pensions spokesman said: ‘No one should be forced to choose between their health and financial hardship. That’s why we plan to strengthen statutory sick pay, so that there is a safety net for those who need it most.’