Health: Economic Inactivity

Lord Londesborough Excerpts

Thursday 18th May 2023 Lords Chamber

Asked by

[Lord Londesborough]

To ask His Majesty’s Government what assessment they have made of the extent to which poor health is contributing to a rise in economic inactivity.

[Lord Evans of Rainow (Con)]

My Lords, long-term sickness is now the most common reason for economic inactivity among the working-age population. The number reporting being long-term sick or disabled as their main reason for economic inactivity has grown by 550,000 over the last four years to a total of 2.6 million people. We therefore announced a wide-reaching package in the Spring Budget to support disabled people and people with health conditions to work, building on our existing package of support.

[Lord Londesborough (CB)]

I thank the Minister for his response, but our nation’s deteriorating health requires urgent, in-depth analysis. The increase of 500,000 people on long-term sick leave is estimated to hit our economic output and productivity by between £30 billion and £50 billion per annum. Add that to our annual benefits for inactive working age people, which has grown by £35 billion in the last three years. It is a vicious circle: less economic activity, less tax revenue, less funds for healthcare and soaring benefits bills. When will we see insightful data on what lies behind the record 2.6 million who are long-term sick linked to NHS performance, particularly preventative healthcare?

[Lord Evans of Rainow (Con)]

My Lords, the Prime Minister tasked my right honourable friend the Secretary of State for Work and Pensions to look at workforce participation working across government. The Government are focused on supporting those groups where inactivity levels are higher and so employment support is most needed, including the long-term sick, the disabled, welfare recipients, people aged over 50 and parents. To tackle rising economic inactivity due to long-term sickness, a wide-ranging package was announced in the Spring Budget to support disabled people and those with health conditions to work. New investment broadens access to additional work coach support for disabled people and those with health conditions, introduces a new supported employment programme and focuses on providing faster access to joined up work and health support.