The UK is facing a quiet economic crisis, one driven not by inflation or interest rates, but by people.
The Keep Britain Working Review reveals that more than 1 in 5 working-age adults are now out of the workforce, largely due to ill-health, disability, and long-term conditions. Although the findings received little media attention, the implications are profound. For a modern economy, these figures represent a breaking point.
As part of our ongoing series on the Employment Rights Bill, this report is essential reading for employers wanting to get ahead of the sweeping changes to workplace rights and expectations arriving in 2025 and beyond.
One message is clear:
Britain doesn’t just need more workers. We need healthier, safer, more inclusive workplaces.
The Crisis No Organisation Can Ignore
Workforce inactivity is costing the UK a staggering £212 billion a year, equivalent to 7% of GDP. Employers alone absorb an average loss of £120 per employee, per day due to sickness absence.
If organisations fail to adjust, pressures on productivity, recruitment, and retention will only intensify. The UK already lags behind countries such as the Netherlands and Denmark, where structured, preventative workplace health systems are the norm.
When viewed alongside the Employment Rights Bill with its strengthened day-one rights, enhanced flexible working, and greater protections for disabled workers, the direction of travel is unmistakable:
Employers must rethink how they support health, disability, and inclusion at work.
What’s Going Wrong? Three Systemic Failures
The review highlights three deep-rooted problems:
1. A culture of fear around health disclosure
Many employees hide their health or disability needs due to fear of judgment, penalties, or losing their job.
2. Weak or inconsistent workplace support
Provision varies massively between employers. Some excel; many offer no meaningful support at all.
3. Barriers that lock disabled people out of work
Inaccessible recruitment, rigid job design, and poor adjustment processes disadvantage disabled candidates long before they enter the workplace.
These aren’t minor issues. They are structural and require a structural solution.
A New Framework: The Healthy Working Lifecycle
The review introduces the Healthy Working Lifecycle, an evidence-based model employers can embed throughout the employee journey, from recruitment to exit. Key components include:
- Prevention: addressing risks before they lead to absence
- Early intervention: spotting issues early and acting quickly
- Workplace adjustments: treating adjustments as standard practice, not an afterthought
- Rehabilitation and return-to-work pathways
- Re-employment support for those who have fallen out of work
This represents a shift from reactive to proactive — perfectly aligned with the Employment Rights Bill.
What Employers Need to Do Now
To prepare for the legislative landscape of 2025 and beyond, employers should:
Implement the Healthy Working Lifecycle
Adopt robust processes, clarity, and compassionate support throughout the employment journey.
Strengthen Disability Impact Assessment (DIA) practices
A powerful tool for building fairness and compliance into flexible working, adjustments, and job design.
(Aim Higher Training’s DIA programme provides a practical starting point.)
Create cultures where people feel safe to disclose health needs
This is essential for early action and legal compliance under both the Equality Act and the new Bill.
Upgrade Workplace Health Provision (WHP)
The review recommends accessible early support, simple referral routes, and case management, even for SMEs.
Start collecting and using workplace health data
This will become increasingly important as employment standards and compliance expectations evolve.
Shared Responsibility: Employers, Employees, Government
The review calls for a three-way collaboration:
- Employers leading on prevention and support
- Employees engaging openly about their needs
- Government enabling change through reform, incentives, and proposed structures such as a Workplace Health Intelligence Unit
This mirrors the Employment Rights Bill’s shift towards a preventative, inclusive model of work.
Why This Matters Now
If the UK gets this right, the benefits are huge:
- Stronger productivity
- Greater economic growth
- More inclusive workplaces
- Reduced welfare reliance
- Faster access to work for disabled people
- Better employer reputation, recruitment, and retention
If we get it wrong, the economic and social costs which are already enormous, will continue to rise.
Last Thoughts
The Keep Britain Working Review aligns perfectly with the Employment Rights Bill’s vision of a fair, modern, inclusive workplace. For employers, this is not just guidance — it’s a preview of what the future of work will demand.
Now is the time to take action………
- Adopt preventative practices.
- Embed disability inclusion and flexible working.
- Train managers and HR staff.
- Build cultures where everyone can thrive and contribute.
Aim Higher Training helps organisations move from compliance to capability, particularly through Disability Impact Assessment (DIA) training, accessible policy development, and workforce development programmes.
The future of work belongs to organisations that invest in health, fairness, and inclusion.
This report shows us exactly how to get there.
This article is part of our current series on the new Employment Rights Bill that is currently moving through parliament. It marks a significant change to employment in the United Kingdom and will make significant changes for both employers and emplyees alike.