UK Could Save £1 Billion by Keeping Ill Workers Employed, TUC Report Reveals
March 10, 2025
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
Get a daily email with more UK News stories
Source

The Guardian • Mar 10, 2025
More support for people in ill health to stay in work ‘could save UK £1bn’