
Every young person who leaves the workforce due to long term illness costs the country £1 million over their lifetime, according to a new review. The findings, published today by Sir Charlie Mayfield, highlight an alarming trend in which a rising number of young Britons are dropping out of employment, with mental health issues being the primary driver. Mayfield estimates that if a 22 year old leaves work, the combined loss to the individual and the state can surpass £1 million, through lost earnings, reduced tax revenue, higher welfare payments and additional NHS expenditure.
Britain has seen 800000 more people fall out of work for health reasons since 2019. The review warns that without urgent intervention, an extra 600000 could be added to this total by 2030. The increase is particularly severe among 16 to 34 year olds, with the number reporting mental health related economic inactivity up by 190000 between 2019 and 2024, a staggering 76 percent leap. The cost of this trend to the national economy is now estimated at £212 billion annually, or around seven percent of GDP and almost seventy percent of all income tax collected.
Mayfield cautions that proposed changes to workers rights, including day one employment protections, could make employers more risk averse when managing health issues. Companies already struggle with concerns about legal disputes when employees can no longer perform their original roles. The review therefore recommends fast tracking alternative dispute resolution processes in tandem with upcoming reforms.
Workplace health schemes, particularly non clinical case management services, are flagged as crucial for supporting staff and line managers. Over 60 employers including the British Beer and Pub Association, John Lewis and Google UK have signed up as vanguard organisations to pioneer new approaches. Their efforts over the next three years will centre on mental health, retaining older workers and ensuring disabled workers have better access to and retention in employment.
Mayfield asserts that higher public spending alone is not a solution. Both government and employers must empower and incentivise action on workforce health. At the same time, he stresses the importance of personal responsibility in maintaining engagement with work and support services. Becoming disengaged or overly reliant on benefits, Mayfield argues, risks long term dependency and lost opportunity for both individuals and the nation.
The UK trails European peers on workforce participation rates, with twenty percent of working age adults out of work and not seeking employment, compared with 14.5 percent in the Netherlands and lower rates in Sweden and Denmark. If current patterns persist, the welfare bill is projected to reach £65 billion by the end of the decade, piling additional pressure on employers, the NHS and state finances alike.
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