Younger employees are disproportionately impacted by long-term illness, with 66 per cent of workers aged 18–24 taking more than two weeks of sick leave in the past five years.
According to a Barnett Waddingham report and round table, 27 per cent of young people have been absent for one to five months, creating what the firm describes as “career-interrupting health breaks.”
Overall, nearly half of UK workers, 46 per cent, have taken extended sick leave in the past five years, with 19 per cent being out of work for one to five months.
Despite these challenges, businesses often fail to fill workforce gaps. Instead of hiring temporary replacements, most companies expect the remaining employees to absorb the extra workload, leading to a cycle of increased stress, burnout, and further absenteeism.
Workers are demanding changes from both businesses and the NHS. Around 24 per cent want quicker specialist referrals, 22 per cent seek more virtual NHS consultations, and more than a quarter want lower NHS waiting times through more in-person visits. Mental health support is also a top priority, particularly for women at 25 per cent and those aged 25–34 at 27 per cent.
Employers are also facing calls for improved workplace policies. The Majority of workers want clearer sick leave rules, 21 per cent seek workplace modifications such as flexible work, and 22 per cent request financial assistance for managing long-term conditions. But a significant support gap remains with 58 per cent of workers not having employer-sponsored private medical insurance, 31 per cent lacking paid sick leave, and 61 per cent not having access to critical illness insurance.
According to the firm, addressing these challenges requires action from both businesses and policymakers. It says that expanding employer health benefits and improving NHS efficiency will be key to tackling economic inactivity and workplace health concerns.
Barnett Waddingham partner and head of benefit consulting David Collington says: “Employers are complaining that the NHS isn’t providing the support that employees need. But there’s a big question of can the employers do more. We’ve surveyed employers with over 90 per cent saying they offer employee assistance programmes. But when you ask employees, 50 per cent said that they didn’t have access to an employee assistance programme.
“We are calling those things ‘career interruption breaks,’ and that has a massive impact. When we delved into the research, we looked at what happens when people are actually off on long-term sickness. Are additional staff recruited? Are temps brought in? The most profound answer there was no, nothing happens. The rest of the workforce is expected to pick up the extra work when this population is off sick.
“We’ve got economic inactivity at record highs. Something needs to happen. And, you know, it’s a pressing change for the government… but the general view is employers could do more and probably need to.”
Barnett Waddingham partner and head of platform and benefits Julia Turney says: “The message is clear: workers need better health support – both from employers and the NHS – to stay in or return to work. With economic inactivity rising, businesses and the government can’t afford to ignore the growing gaps in healthcare benefits, and mental health support. Flexible working, better health cover, and faster NHS services will all be part of the solution – but action is needed now.
“With the Spring Statement fast approaching, the Chancellor and the government must think carefully about how they enact the next stages of their Get Britain Working mandate. Otherwise, we risk another year of economic stagnation, a disengaged, inactive workforce that is too sick to be productive, as well as a business landscape struggling with absenteeism, lost talent, and declining productivity. If both the government and employers fail to step up, the cost won’t just be to individuals – it will be to the entire economy.”
