5th August 2026
Keep Britain Working: Can the UK Reverse Its Growing Health and Jobs Crisis?
Britain's economy is facing a challenge that receives far less attention than inflation, interest rates or unemployment.
Millions of people are leaving work because of long-term illness.
A new Government progress report, "Keep Britain Working – The Story So Far", argues that helping people remain in employment could become one of the biggest opportunities to boost the UK's economy over the next decade.
The figures are striking.
Around three million people of working age are currently out of work because of ill health, while the overall cost to the economy is estimated at £212 billion every year through lost productivity, increased welfare spending and additional pressure on the NHS.
Rather than concentrating solely on getting people back into work after months or years away, the review believes Britain should focus on preventing people from leaving work in the first place.
Prevention Rather Than Cure
The report argues that employers need better support to identify health problems early and make reasonable adjustments before employees feel forced to resign or take long-term sickness absence.
Simple workplace changes, flexible hours, occupational health advice or earlier medical support could allow many people with physical or mental health conditions to continue working successfully.
According to the review, retaining just 1% more of the existing workforce—around 330,000 people—would provide a major boost to the economy without increasing immigration or waiting for more young people to enter the labour market.
A Fragmented System
One of the report's strongest criticisms is that responsibility is currently spread across too many organisations.
Employers, GPs, hospitals, occupational health providers, the NHS, local authorities and government departments often operate independently, leaving workers to navigate a confusing system at precisely the time they need the greatest support.
The review calls for much closer cooperation between all those involved so that support begins before someone loses their job rather than afterwards.
Good for Business Too
Although much of the debate focuses on employees, businesses also stand to benefit.
Replacing experienced staff is expensive, recruitment is becoming more difficult and sickness absence remains significantly higher than before the pandemic.
Keeping experienced workers in employment reduces recruitment costs, protects valuable skills and improves productivity.
For many employers, supporting existing staff may prove cheaper than continually recruiting replacements.
What Does This Mean for Scotland?
The issues highlighted in the report are particularly relevant to Scotland, where many employers already face labour shortages caused by an ageing population.
Rural areas such as the Highlands and Islands often experience even greater recruitment difficulties, making it especially important to retain experienced employees wherever possible.
Helping people remain in work for longer could ease pressure on businesses struggling to fill vacancies while reducing demand on health and welfare services.
The Challenge Ahead
The Government has now worked with more than 250 employers and organisations to develop practical solutions, but ministers acknowledge there is still much to do before a national system is in place.
The ambition is simple.
Instead of waiting until people become economically inactive, Britain should build a system that helps them stay healthy, remain in employment and continue contributing to the economy.
With nearly three million people currently out of work because of ill health, the prize is substantial.
If the review succeeds, it could improve living standards, reduce pressure on public finances, help businesses recruit and retain staff and strengthen economic growth—all by helping more people stay in jobs they already have.
Whether that ambition can be delivered across employers, the NHS and government remains one of the biggest employment policy challenges of the coming decade.
Rad more details at the June Update published 4 August 2026