Sickness benefit bill to hit £17bn as mental health problems rise
Britain’s sickness benefits bill will rise by £2.4 billion to £16.9 billion by the end of the decade despite years of “tough talk” from ministers, a report says today.
Sickness absence payments will rise dramatically over the next three years, from its current level of £14.5 billion a year, a report by the IPPR think tank has warned. Half of those making claims now do so because of mental health conditions, up from a third 20 years ago, the statistics show.
In total, sickness absence costs the state and employers £23.5 billion a year, the IPPR said.
The think tank is calling on the Government to set up a “Fit Pay” system that allows employees who develop a mental health condition to temporarily reduce their hours, in order to stop them ending up on benefits.
Theresa May has made mental health one of her key issues since entering Downing Street.
Joe Dromey, from the IPPR, said: “Governments have talked tough for years about cutting the sickness benefits bill. But they have failed, as too little has been done to keep people well in work and reduce the flow on to sickness benefits.
“More and more people are suffering from mental health conditions in work. But our sick pay system has failed to keep up with these changes.”
Dr Clare Gerada, a former chairman of the Royal College of GPs, said: “For too long we have seen supporting health and mental health as the responsibility only of hardworking GPs and the wider NHS, ignoring the vital role employers could and should play.
“We’ve waited for people to fall ill, and fall out of work, before stepping in. As a result, we’ve failed to reduce the number of people out of work on health-related benefits.”
She added: “Employers need to play their part both in promoting the health and well-being of their workforce, and in supporting people back to work when they fall ill. If the Government wants to deliver on its target of reducing the disability employment gap, it should look at these recommendations.”