Rising levels of workplace sickness are costing UK businesses billions of dollars each year, according to a new report from the Institute for Public Policy Research (IPPR). The think tank’s analysis reveals that the annual hidden cost of employee sickness has risen by £30bn since 2018. Of that increase, £25bn is attributed to lower productivity due to employees working while sick, while just £5bn is due to an increase in sick days.

The report highlights that UK workers, compared to their counterparts in other OECD and European countries, are among the least likely to take sick days, but the most likely to work while sick. On average, workers lose the equivalent of 44 days of productivity per year due to working while sick, compared with 35 days in 2018. They also take an average of 6.7 days off sick, compared with 3.7 days in 2018.

The IPPR findings suggest that the tendency to work while ill, fuelled by factors such as poor workplace culture, limited access to sick pay and financial insecurity, not only complicates recovery but also spreads illness and further reduces productivity. This problem is more pronounced among marginalised ethnic groups, those in lower-quality jobs and workers without formal qualifications.

The report, the latest interim publication from the cross-party IPPR Health and Wellbeing Committee, argues that the current interaction between health and work in the UK is harmful. The poll, conducted by YouGov for the think tank, found that 74 per cent of people believe the government should do more to support health in the workplace.

To address these issues, IPPR is proposing a comprehensive, pro-business health plan designed to support a healthier work environment. The plan includes:

• Incentives: Introducing a new tax incentive for companies that commit to making significant improvements to the health of their employees, with a particular focus on small and medium-sized enterprises (SMEs).
• Regulation: Introducing a “do no harm” obligation for employers, regulating health effects, not just safety measures.
• Investment: Introduce employee health reporting, similar to climate emissions reporting, to help investors distinguish between health-focused and health-damaging companies.