It’s been announced by the DWP today that more than 60 major employers – including British Airways, Google, Sainsbury’s and Holland & Barrett – have joined forces with the government in a new three-year partnership aimed at tackling rising levels of ill-health among the UK workforce.
The initiative, announced today by the Department for Work and Pensions, follows Sir Charlie Mayfield’s Keep Britain Working Review, which lays bare the growing economic and social cost of long-term sickness. The report reveals that one in five working-age adults are now out of the labour force due to health reasons – an increase of 800,000 since 2019 – with the cost of ill-health equivalent to 7% of GDP, or nearly 70% of total income tax receipts.
Under the plans, employer-led “Vanguards” will test and refine new approaches to workplace health over the next three years, focusing on prevention, early support, and better returns to work. The goal is to develop a “healthy working lifecycle” framework that could become a voluntary certified standard by 2029.
The partnership will also work to improve disability inclusion, with UK employment among disabled people currently at 53%, lagging behind leading OECD nations. Employers are estimated to lose £85 billion a year through sickness, turnover and lost productivity.
The government said the initiative builds on its wider Plan for Change, which includes a commitment to invest £1 billion a year in disability employment support by the end of the decade. The aim, ministers said, is to help more people stay healthy, remain in work and access the skills needed to move into good, secure jobs.
Sir Charlie Mayfield, author of the Keep Britain Working Review, said:
“Britain is sliding into an avoidable crisis. Ill-health has become one of the biggest brakes on growth and opportunity. But this is not inevitable.
“Employers are uniquely placed to make a difference, preventing health issues where possible, supporting people when they arise, and helping them return to work. If we keep Britain working, everyone wins – people, employers, and the state.
“That’s why the action the government is taking forward from my Review is so important. I’m looking forward to working with them and with employers, large and small, to keep people in work, unlock potential and build a healthier, more prosperous Britain.”
To help drive this work forward Sir Charlie Mayfield will co-lead a Vanguard Taskforce with Ministers, bringing together employers, disabled people, workers’ representatives, and health experts.
The Taskforce will work with Vanguards to develop the interventions and build the evidence for what works. This will inform wider reform by identifying what approaches could become part of the future employment landscape and drive adoption.
Work and Pensions Secretary Pat McFadden said: “I want to thank Sir Charlie Mayfield for his excellent work. His message is crystal clear: keeping people healthy and in work is the right thing to do and is essential for economic growth.
“Business is our partner in building a productive workforce – because when businesses retain talent and reduce workplace ill-health, everyone wins.
“That’s why we’re acting now to launch employer-led Vanguards as part of the Plan for Change, driving economic growth and opportunity across the country.”
The government said that this will bolster its plan to get Britain working again and ensure everyone has the opportunity to thrive by modernising jobcentres, locally driven support, and delivering a Youth Guarantee so every young person is either earning or learning.
Zurich UK is one of the vanguard employers joining forces with the government to tackle the issues pushing people out of work that are in the spotlight with this review today. Peter Hamilton, Head of Market Engagement at Zurich UK said: “There’s a lot to like in the Review. It makes clear the significant societal and individual costs of economic inactivity, especially lost earnings from extended absences. Zurich’s own research shows long-term sickness could cost the UK £66.3 billion a year by 2030. Positively, it also shows solutions to this problem exist. The Report’s recommendations for Government, including the establishment of the Workplace Health Intelligence Unit, are clear and practical and we strongly support them.
“We’re delighted to be a Vanguard employer and believe we have plenty of workplace health insight to share, both as an employer and as an insurer. Equally, we’re keen to learn from others in different sectors with different challenges. The concept of identifying and sharing best practice is a practical and positive step, and recognising the shared responsibilities of employers, employees and the NHS is critical. The report highlights the need to get employers ‘on the pitch’ early; we need ‘stay in work’ plans, not ‘absence plans’. Insurers understand that prevention and swift intervention, like rehabilitation, make a huge difference. We know that 9 in 10 employees return to work when they have access to vocational rehabilitation, but only 3 in 10 have this.
“Overall, the individual, families, businesses and the UK economy all benefit when someone is supported in a return to work. We also recognise some people with long-term conditions may not be able to work, and benefit systems must support them.”
Catherine Foot, Director of the Standard Life Centre for the Future of Retirement said: “We welcome the publication of the Keep Britain Working Review as there is a clear need for reform to tackle economic inactivity due to ill-health and disability. The scale of the challenge is significant, with over 8.7 million people in the UK living with work-limiting health conditions – including an increase of 900,000 in those aged 50–64 since 2015. The review rightly highlights that small changes won’t be enough; we need coordinated action across government, employers, and health services to create better pathways into and back into work.
“Enabling people in their 50s and 60s to enter and stay in good work is not only vital for national economic growth, it’s also essential for individual financial resilience. Supporting longer working lives helps people continue earning and saving, reducing the risk of pre-retirement poverty and the need to draw down pensions too early.
“Promoting longer, healthier working lives in all age groups is good for the economy, businesses and workers, and good quality work also plays a vital role in enabling better, longer lives and enabling individuals to benefit from improved mental and financial health as they journey towards retirement. We look forward to working with the government on the review findings as well as other proven interventions such as flexible work, paid carers leave and reforms to adult careers guidance.”
Vanessa Sallows, Group Protection Claims & Governance Director at L&G, comments:
“We welcome the publication of the Keep Britain Working Review recommendations. It’s encouraging to see that the vital role of prevention, early intervention and rehabilitation in the workplace has been recognised.
“We have long followed the principle that good work is beneficial for health through our Group Income Protection (GIP) proposition. And the outcomes data for our Vocational Rehabilitation service shows consistent benefits for both individuals and businesses, for example, more than 9 in 10 employees with a mental health claim returned to work before payments began last year.
“Looking ahead, collaboration across industry, government, intermediaries and employers will be critical to fully realise the potential of these recommendations and drive meaningful change for the UK workforce. By continuing to align on best practice, sharing outcomes transparently and fostering innovation in both GIP solutions and workplace support such as Vocational Rehabilitation, we can help ensure that more people are empowered to remain in or return to good work.”
Katharine Moxham, Spokesperson for Group Risk Development (GRiD) said:
“Helping employees stay in and return to work, particularly the sick and disabled, has long been a focus for the group risk industry, and, as such, GRiD has appreciated the opportunity of working collaboratively with Sir Charlie Mayfield to demonstrate the value of the vocational rehabilitation model for employers, their employees and the state.
“The report recommends that more employers adopt a Workplace Health Provision model which encompasses case management, early intervention and stay-in and return-to-work plans. It further suggests that, as currently, this should be funded by employers and delivered by the existing eco-system of providers, such as Group Income Protection insurers.
“The strong acceptance by Government of the report’s recommendations constitutes clear recognition that the vocational rehabilitation and case-management services – such as those offered by Group Income Protection insurers to help clients’ employees maintain their health, and facilitate their return to work – represent best practice. It’s encouraging that Government wants to see wider adoption of such an approach, which would benefit individuals, businesses, and the wider economy.
“GRiD and its members look forward to the continued partnership between employers, providers and Government, which is envisaged in the Vanguard phase, and working further with Sir Charlie Mayfield, the new Workplace Health Intelligence Unit and across Government to refine how this will work in practice.”
Charlotte O’Brien, Head of Employee Benefits at MetLife UK, comments: “While the absolute priority is ensuring employees feel supported during moments of absence, whether short or long-term, without careful management this could prolong time away from work and could trigger more serious issues, higher costs, and greater business disruption.
“Sir Charlie Mayfield’s government review aims to cut the numbers of long-term sickness which calls for a lot more to be done through the workplace – which is where the benefits of preventative and early intervention tools are so important. Quick and targeted action enables employers to minimise time off, reduce the risk of long-term ill health, and ensure employees feel properly supported and cared for.”
Liz Barclay, Small Business and Consumer Champion and author of MetLife UK’s Early Intervention: reduce absence, increase productivity, keep Britain working whitepaper, commented: “I’ve spent decades working with businesses of all sizes. Sickness absence is surging, and as a small business owner, I know the impact it can have on productivity and profitability, as well as on the relationship with customers. For me, the most important people at the heart of the detriment, are skilled, experienced and are hugely valuable and valued employees – people with mortgages, rent and bills to pay. People who are becoming unwell and being unnecessarily lost from the workplace, when their preference would be better health and remaining in work earning their salary. Founders, owners and bosses owe it to their business and their employees to support them, as quickly as possible, back into the saddle.
“I am not simply replaying the problem statement we already know exists, it’s both the wake-up call and a rallying cry to UK businesses. The purpose of this whitepaper is to bring to the forefront a possible solution to help safeguard both workforce wellbeing and the bottom line.”
RNIB’s Chief Strategy and Public Affairs Officer, Vivienne Francis, said:
“We cannot continue with a situation where people with sight loss are unnecessarily falling out of the workplace, whether that’s because employers don’t know how to support them or because of systems not working.
“Too many blind and partially sighted people remain locked out of work – with around 11,000 people with sight loss currently looking for employment.
“This review marks an important first step in fixing this and must be a turning point towards lasting change – RNIB is ready to support the Vanguard Taskforce in building inclusive workplaces.”
Ian Talbot, CEO at Healix Health, comments:
“As Sir Charlie Mayfield’s review highlights, the UK is facing a potential economic inactivity crisis driven by ill health, but this is not inevitable. The report rightly recognises that good work and good health go hand in hand, and that prevention must sit at the heart of any long-term solution.
“At a time when sickness and absence are costing employers £85 billion a year, investment in preventative healthcare should not be seen as a cost but as a strategic advantage. Keeping people healthy, supported, and productive benefits both employers and the wider economy. Corporate healthcare trusts play a vital role in this. They offer cost-effective ways for employers to take direct responsibility for workforce wellbeing, building a proactive approach to wellness.
“We welcome the government’s partnership with leading employers to embed workplace health, but to make lasting change, we must create an environment that actively rewards prevention over reactive care. Employers and policymakers alike should prioritise investment in preventative healthcare now, moving the focus from the cost of illness to the value of health.”
Commenting on the publication of the Keep Britain Working Review, Dan Crook, Managing Director, Protection at Canada Life, said:
“We welcome the Keep Britain Working Review’s recognition of the vital role that employers play in safeguarding the mental and physical health of the UK workforce. The Review’s recommendations make it clear that a fundamental, long-term shift in workplace health attitudes is needed; one that is built on genuine collaboration between employers, employees, policymakers, and the providers of services that support workplace health and wellbeing.
“Adopting a preventative approach, combined with proactive and early intervention when employees face health challenges, is essential to reducing long-term workplace absences and building a more resilient, productive workforce. Employers, advisers, and insurance providers like Canada Life are central to this approach, but government leadership remains critical in creating the right incentives and support for businesses to put employee health at the heart of their agenda.
“The government’s support for the recommendations of the Keep Britain Working Review is a significant step forward. Together, we have a powerful opportunity for government, employers, and providers to collectively tackle the £212 billion a year in lost economic output and increased costs that is shouldered by employers and the state due to working age ill-health1, and deliver meaningful, lasting improvements to workplace wellbeing across the UK.”
