By Eniola Amadu
Keir Starmer’s government has been urged to establish a new “national occupational health service” to address rising levels of economic inactivity linked to long-term sickness.
In a report released, the Fabian Society thinktank proposed funding the system through a £2bn levy on Britain’s largest employers.
It argued that the new service could help more people remain in work, while addressing the patchy and inconsistent support currently available.
The plan suggests adding a health component to Labour’s incoming growth and skills levy, which is due to replace the apprenticeship levy.
Under the proposal, the biggest tenth of businesses would make financial contributions to fund occupational health services for firms of all sizes, with delivery carried out by private providers.
Economic inactivity in the UK is at record levels, with more than 9 million working-age adults neither in employment nor looking for work. Of this number, almost 3 million cite long-term sickness as the primary reason.
Rising rates of mental health problems, particularly among younger people, have been a major driver.
Sir Charlie Mayfield, the former John Lewis chair leading the government’s “Keep Britain Working” review, welcomed the Fabian Society’s findings, noting their alignment with evidence being gathered for his final report due this autumn.
The Fabian Society’s report, titled Nye’s Lost Legacy in reference to Labour’s 1945 health secretary Aneurin Bevan, argues that the policy would ultimately benefit both businesses and the wider economy by reducing the number of workers forced to leave employment due to ill-health.
Unison, which backed the study, said the plan could deliver mutual benefits.
Its general secretary, Christina McAnea, said: “Establishing a national system to boost the economy is a no-brainer. It’s a win for workers, their employers and the UK economy as a whole.”
Research from PwC earlier this year similarly highlighted the gaps in occupational health provision, with only 45% of UK workers having access through their employer.
The firm also recommended stronger collaboration between the government and businesses to strengthen support systems.
Sasjkia Otto, senior researcher at the Fabian Society and author of the report, described the issue as a “generational opportunity”.
She said many employers were spending money on workforce health without seeing results due to the inadequacies of the current system.
Responding to the proposals, a government spokesperson said ministers were pursuing measures to increase employment and reduce inactivity, including investment of £3.8bn in employment support and plans for a Youth Guarantee aimed at helping young people into training or work.
