Enhanced Support for Workforce Participation Could Yield Significant Savings for the UK Government
A report suggests that additional support for individuals with work-limiting health conditions could save the UK over £1 billion amid calls for welfare reform.
A report by the Commission for Healthier Working Lives indicates that enhancing support for individuals in ill health to remain in employment could save the UK government upwards of £1 billion.
This comes as Chancellor Rachel Reeves seeks financial efficiencies ahead of the upcoming spring statement on March 26. The commission highlights the urgent need to address the challenges faced by approximately 8 million people in Britain with work-limiting health conditions.
In conjunction with this report, a recent analysis by the Trades Union Congress (TUC) revealed that work-related ill health has resulted in a significant increase in lost working days—rising by a third since 2010 to a total of 34 million days, which translates to a cost exceeding £400 million weekly for the UK economy.
The TUC emphasized the importance of the employment rights bill, returning to parliament this week, as a means to improve work conditions across the country.
TUC General Secretary Paul Nowak stated that reforms are necessary to transition away from Britain's current low-rights, low-pay economic framework, which he argues has been under severe strain for the last 14 years.
The commission, made up of business leaders, trade unions, and health experts, posited that more robust support systems would result in greater workforce participation and economic benefits, reducing governmental expenditure on welfare.
The report articulated that an overemphasis on immediate benefit reductions and the elimination of NHS waiting lists could potentially lead to policy errors that impede longer-term improvements.
To address the issues, the commission is advocating for a substantial shift in the approach towards job support for those experiencing health conditions.
It estimates that with an adequate support framework, at least 100,000 additional individuals could remain employed over the next five years, projecting savings of £1.1 billion after factoring in support costs.
Currently, the support system for individuals with health challenges is described as fragmented and reactive, focusing primarily on aiding those who have already exited the workforce rather than supporting existing employees.
Key recommendations from the commission include the establishment of a 'back to work offer,' ensuring that those seeking employment would retain their benefits for no less than 18 months, the introduction of a vocational rehabilitation benefit lasting up to 12 months, a review of statutory sick pay, and initiating a caseworker-led service to assist employers and advocate for workers.
Data presented by the commission indicates that the number of individuals unable to work due to health issues is increasing by 300,000 annually, complicating their reintegration into the labor market.
Upcoming government proposals on welfare reforms are expected to be unveiled by Work and Pensions Secretary Liz Kendall, amidst discussions of potential discord within Labour.
The Treasury is reportedly aiming for £5 billion in reductions from the welfare budget as part of Chancellor Reeves’ efforts to adhere to fiscal targets coinciding with the Office for Budget Responsibility's forthcoming economic forecasts.
Kendall is advocating for reinvestment of savings into back-to-work initiatives for the long-term sick, while the Treasury is inclined to utilize the funds to mitigate tax increases or budget cuts in other sectors.
She has reinforced the view that facilitating employment opportunities for more people represents an effective solution to lower the benefits bill while responding to assertions of friction between her department and the Chancellor by affirming collective governmental objectives.
A spokesperson from the Department for Work and Pensions (DWP) reiterated the need for systemic reform, stating that the current welfare structure is ineffective and requires modifications to assist those who can work in finding employment, while also being fair to taxpayers.
They emphasized that without reform, a growing number of potential workers would be excluded from employment opportunities, which detrimentally affects both the economy and individual welfare.
The DWP aims to align its welfare system with a goal of achieving an 80% employment rate through substantial reforms rather than cuts.
This comes as Chancellor Rachel Reeves seeks financial efficiencies ahead of the upcoming spring statement on March 26. The commission highlights the urgent need to address the challenges faced by approximately 8 million people in Britain with work-limiting health conditions.
In conjunction with this report, a recent analysis by the Trades Union Congress (TUC) revealed that work-related ill health has resulted in a significant increase in lost working days—rising by a third since 2010 to a total of 34 million days, which translates to a cost exceeding £400 million weekly for the UK economy.
The TUC emphasized the importance of the employment rights bill, returning to parliament this week, as a means to improve work conditions across the country.
TUC General Secretary Paul Nowak stated that reforms are necessary to transition away from Britain's current low-rights, low-pay economic framework, which he argues has been under severe strain for the last 14 years.
The commission, made up of business leaders, trade unions, and health experts, posited that more robust support systems would result in greater workforce participation and economic benefits, reducing governmental expenditure on welfare.
The report articulated that an overemphasis on immediate benefit reductions and the elimination of NHS waiting lists could potentially lead to policy errors that impede longer-term improvements.
To address the issues, the commission is advocating for a substantial shift in the approach towards job support for those experiencing health conditions.
It estimates that with an adequate support framework, at least 100,000 additional individuals could remain employed over the next five years, projecting savings of £1.1 billion after factoring in support costs.
Currently, the support system for individuals with health challenges is described as fragmented and reactive, focusing primarily on aiding those who have already exited the workforce rather than supporting existing employees.
Key recommendations from the commission include the establishment of a 'back to work offer,' ensuring that those seeking employment would retain their benefits for no less than 18 months, the introduction of a vocational rehabilitation benefit lasting up to 12 months, a review of statutory sick pay, and initiating a caseworker-led service to assist employers and advocate for workers.
Data presented by the commission indicates that the number of individuals unable to work due to health issues is increasing by 300,000 annually, complicating their reintegration into the labor market.
Upcoming government proposals on welfare reforms are expected to be unveiled by Work and Pensions Secretary Liz Kendall, amidst discussions of potential discord within Labour.
The Treasury is reportedly aiming for £5 billion in reductions from the welfare budget as part of Chancellor Reeves’ efforts to adhere to fiscal targets coinciding with the Office for Budget Responsibility's forthcoming economic forecasts.
Kendall is advocating for reinvestment of savings into back-to-work initiatives for the long-term sick, while the Treasury is inclined to utilize the funds to mitigate tax increases or budget cuts in other sectors.
She has reinforced the view that facilitating employment opportunities for more people represents an effective solution to lower the benefits bill while responding to assertions of friction between her department and the Chancellor by affirming collective governmental objectives.
A spokesperson from the Department for Work and Pensions (DWP) reiterated the need for systemic reform, stating that the current welfare structure is ineffective and requires modifications to assist those who can work in finding employment, while also being fair to taxpayers.
They emphasized that without reform, a growing number of potential workers would be excluded from employment opportunities, which detrimentally affects both the economy and individual welfare.
The DWP aims to align its welfare system with a goal of achieving an 80% employment rate through substantial reforms rather than cuts.
