In a concerning trend, the number of adults in the UK who are economically inactive due to ill health has reached its highest level since the 1990s, according to a report by the Resolution Foundation. The think tank’s analysis reveals that the number of people leaving the workforce due to long-term sickness rose from 2.1 million in July 2019 to a peak of 2.8 million in October 2023, marking the “longest sustained rise” since records began in 1994.
The report highlights that younger and older individuals account for the majority of the increase in overall economic inactivity, which could have severe consequences for their living standards and career trajectories. Louise Murphy, a senior economist at the Resolution Foundation, emphasized the potential impact of this trend on individuals’ lives and the economy as a whole.
Notably, the UK stands out as the only G7 economy that has not returned to its pre-pandemic employment rate, largely due to the rise in long-term sickness absence. The upward trend in economic inactivity due to ill health began even before the pandemic, in the summer of 2019, and has persisted for 54 months, nearly matching the previous record of 55 months set between 1994 and 1998.
The report also draws attention to the significant increase in claims for disability benefits, particularly Personal Independence Payment (PIP), which saw a 68% rise from 2020 to 2024. Among 16–17-year-olds, new PIP claims surged by an astonishing 138%.
Mental health disorders and musculoskeletal problems emerged as the most common medical conditions cited by benefit claimants, with 69% claiming for mental health issues and 48% experiencing connective or musculoskeletal pain.
The government has announced plans to address the issue of long-term economic inactivity, including reforms to the work capability assessment, stricter fit-to-work tests, and jobseeker support. The Chancellor, Jeremy Hunt, has pledged £1.3 billion over the next five years to help nearly 700,000 people with health conditions find employment.
Industry experts, such as Shazia Ejaz from the Recruitment and Employment Federation (REC), have pointed to lengthy NHS waiting lists as a significant factor contributing to the problem. Ejaz also emphasized the need for better infrastructure around transport, childcare, and social care to tackle the UK’s inactivity challenge effectively.
