Number of long-term sick hits record in challenge for Chancellor

THE number of people forced out of the labour market because of long-term sickness has hit a new record, as Jeremy Hunt prepares to unveil his “back to work” Budget.

Some 2.52m people of working age were unable to work because of a long-term health condition from November to January, figures from the Office for National Statistics show. It is the highest number since records began 30 years ago.

It marks an increase of 64,000 from the previous quarter and narrowly surpassed a previous peak last summer.

The figure, which many economists believe is linked to record NHS waiting lists, comes as the Chancellor is preparing to unveil a back-to-work drive in today’s Budget. Mr Hunt is expected to announce sanctions and incentives targeting early retirees, parents and people with health problems in an effort to expand Britain’s labour force.

The Government is considering making it easier for people suffering from long-term sickness to test out working without risking losing their benefits if they then find it is not feasible.

ONS figures show that some of the most common issues for inactivity are musculoskeletal among older people, while younger people typically struggle with their mental health.

The UK is unique among advanced economies in that its employment rate still hovers below the pre-pandemic level. It edged up slightly by 0.1 points to 75.7pc, falling short of the 76.6pc rate before Covid struck.

In a small sign of improvement that will be welcomed by Mr Hunt, economic inactivity continued to fall in November to January to 21.3pc, down by 0.2 points, thanks to students and retirees entering the labour market.

Chris Gray, UK director of recruiter Manpowergroup, said there was room for optimism because the activity rate was coming down. “Today’s data gives employers hope for the future,” he said. “The number of people entering the workforce has edged up, with a slight decrease in the level of economic inactivity and unemployment largely unchanged.

“Whilst not at pre-pandemic levels by any means, today’s numbers demonstrate a growing workforce, which provides employers with a future of opportunity for business.”