UK Could Save £1 Billion by Keeping Ill Workers Employed, TUC Report Reveals

March 10, 2025
UK Could Save £1 Billion by Keeping Ill Workers Employed, TUC Report Reveals
  • A recent report suggests that enhancing support for individuals in ill health to remain employed could save the UK government more than £1 billion.

  • TUC General Secretary Paul Nowak highlights the urgent need to transition from a low-rights, low-pay economic model to improve both workers' quality of life and productivity.

  • Current support systems are criticized for being fragmented and reactive, focusing on individuals only after they exit the workforce rather than preventing their departure.

  • The Department for Work and Pensions recognizes the necessity for reform in the welfare system to better assist long-term sick and disabled individuals in their pursuit of employment.

  • The UK faces one of the lowest employment rates among developed nations, a situation exacerbated by the pandemic's effects on working-age individuals.

  • Analysis indicates that approximately 300,000 people leave the workforce each year due to long-term sickness, complicating their re-entry into employment.

  • The Commission has proposed a new 'back to work offer' that would safeguard benefits for job seekers for 18 months, along with a vocational rehabilitation benefit lasting up to 12 months.

  • The Commission for Healthier Working Lives is urging the government to reconsider its strategy regarding the 8 million individuals in Britain who have work-limiting health conditions.

  • The government is anticipated to unveil welfare reform plans shortly, with rumors of a £5 billion reduction in the welfare budget, while Work and Pensions Secretary Liz Kendall advocates for reinvesting savings into job programs for the long-term sick.

  • According to the Trades Union Congress (TUC), work-related illnesses have resulted in a 33% increase in lost workdays since 2010, amounting to 34 million days and costing the economy over £400 million weekly.

  • The Commission supports proactive job retention strategies, suggesting that assisting an additional 100,000 individuals in staying employed could yield substantial savings over the next five years.

Summary based on 1 source


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