Foundation of wealthy country built on health of its people

THE nation’s health and wealth are inextricably linked. So, the latest figures from the ONS makes for grim reading, with those not looking for work due to sickness rising to a record 2.8 million.

This reflects a continued monthon-month downward trend since the pandemic. We must confront the fact that the UK is increasingly in bad health and that this is not good for business, economic prosperity, and society as a whole.

Two-thirds of businesses admit struggling with labour shortages over the past year, according to the CBI. Add in an ageing population, as well as acute skills shortages, it’s clear the labour market in the North East and Tees Valley – and across the nation – is hamstrung, preventing the long-term investment that is needed to boost productivity and accelerate sustainable growth. Those whose health prevents them from earning a living are disproportionately affected by the cost-of-living crisis compared to those who can work. As the Government halts Covid support payments, they will feel the pinch further. And some more acutely depending on where they live given that regional inequality in healthcare provision persists.

Getting to grips with labour outflow due to ill-health is key to raising living standards and unlocking poor productivity in an economy already weighed down by high inflation and high interest rates. The CBI’s suggested reforms ahead of the Spring Budget would provide more support for employees with health issues to help them stay in work by prioritising prevention. Starting with making all Employee Assistance Programs a fully taxable benefit.

Other easy wins would be to enable tax-free reimbursements of eye tests and vaccinations, and by removing the ‘one per employee per tax year’ tax-free limit for health screening and medical check-ups.

Industry in the North East and Tees Valley simply cannot afford to take the health of its workforce for granted. It must not only find, attract and retain talent but also seek preventative measures that address the long-term strains on people from increasing caring responsibilities to those living with physical and mental disabilities.

This means the Government must carry through the planned expansion of eligibility to 30 hours funded childcare to allow parents to increase the hours they work. To help ensure more people with disabilities can enter employment we can improve the Access to Work Scheme by allowing employers to play a more proactive role. Beyond the immediate challenges, a long-term strategy should look to future proof the workforce. Adopting technology wherever possible, to help people achieve more in every hour they work, has the best chance of ameliorating shortages and boosting living standards.

We will, however, need to ease pressures in the short-term with a more pragmatic approach to immigration to get there. As we fast approach a general election, political leaders setting out with growth agendas and to solve the productivity puzzle must prioritise the wellbeing of employees and recognise that the foundation of a wealthier country is built on the health of its people.