A new national partnership between the UK government and more than 60 major employers has been launched to reduce the economic impact of ill-health on the workforce. The initiative follows the Keep Britain Working Review, led by Sir Charlie Mayfield, which found that one in five working-age adults is currently out of the labour force due to health reasons—an increase of 800,000 people since 2019.
The review estimates that ill-health now accounts for losses equivalent to 7% of GDP and costs employers £85 billion annually through sickness absence, staff turnover, and reduced productivity. It also highlights that employment among disabled people remains at 53%, below the levels seen in other OECD countries.
In response, a three-year programme will test new models of workplace health under employer-led “Vanguards.” Participating organisations include British Airways, Google, Sainsbury’s, and Holland & Barrett, as well as mayoral authorities and small businesses. These groups will develop and evaluate approaches to reduce sickness absence, improve return-to-work rates, and strengthen disability inclusion.
The government plans to use the findings to establish a voluntary national standard for healthy working practices by 2029. Alongside this initiative, it is investing £1 billion annually in disability employment support by the end of the decade, aiming to build a more resilient and inclusive labour market.
