Monday, December 1, 2025

Sicknote Britain is costing more than £200bn a year as the country slides into an ‘avoidable crisis’

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Sicknote Britain is costing the country more than £200billion a year as the UK slides into an ‘avoidable crisis’.

A new report by former John Lewis boss Sir Charlie Mayfield lays bare the impact of the growing problem on taxpayers, the NHS and the wider economy.

It urges an overhaul of the ‘fit note’ system used to sign workers off and calls for employers to do more to support those with ill health and help them return.

But the report also demands that employees themselves take more responsibility – warning that those who drop out of work in their 20s for a life on benefits can end up losing out on £1million in lifetime earnings and cost taxpayers the same.

While work ‘can be demanding’, he said, ‘setbacks are part of life’ and frustration with work and the feeling that ‘I hate my boss’ should not be confused with genuine health conditions.

Sir Charlie said: ‘Britain is sliding into an avoidable crisis. Ill health has become one of the biggest brakes on growth and opportunity.’

Drain: The UK faces an ‘unsustainable cost’ of £212bn a year, equivalent to 7% of gross domestic product due to people not working because of ill health - a new report found

Drain: The UK faces an ‘unsustainable cost’ of £212bn a year, equivalent to 7% of gross domestic product due to people not working because of ill health – a new report found

He said the UK faces an ‘unsustainable cost’ of £212 billion a year, equivalent to 7 per cent of gross domestic product (GDP) due to people not working because of ill health.

That is the sum of lost output, welfare payments and additional burdens on the NHS, the report found. 

And the sum is rising, with working-age health and disability benefits costing £45billion in 2024 and expected to rise to £65 billion by 2030.

The report notes that more than one in five people are out of work and not looking for work, comparing unfavourably with other European countries.

And Britain is ‘going in the wrong direction’ with 800,000 more out of work now than in 2019 due to health problems. Another 600,000 will join them by 2030 on current trends.

The report described as ‘particularly concerning’ the growth in 16 to 34 year olds off work with a mental health condition – up by 190,000, or 76 per cent, between 2019 and 2024.

Sir Charlie described fit notes as ‘often problematic’, becoming a ‘barrier to contact, further embedding distance between employer and employee’.

He said GPs were being asked to assess both the treatment needs of a patient and their capacity to work ‘despite most lacking occupational health training and time to get into sufficient detail’.

The report noted that 93 per cent of fit notes in England deem the patient ‘not fit for work’ and are often extended without further consultation.

Jane Gratton, deputy director of public policy at the British Chambers of Commerce, said: ‘The workplace health crisis is damaging for individuals, employers and the economy.

‘Alongside more access to workplace support, fixing the broken fit note system will be crucial to breaking down barriers and raising awareness of solutions.

‘But it is hard for many firms to see past a wall of rising costs, which presents a real barrier to better workplace health provision. 

That’s why firms need support and, with the Budget just weeks away, a commitment to keeping a lid on business taxes is vital.’

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