Long-term work absences could cost £66.3bn a year by 2030

A new study released in partnership with the Centre for Economics and Business Research (Cebr) found that the number of workers with long-term health conditions has increased by 27% in the last six years to a record high of 10.3 million. These workers took a total of 112.5m sick days in 2023, an increase of nearly 70% over the same period.

"Not making the most" of opportunities to reduce absences

According to Peter Hamilton, Head of Market Engagement at Zurich:

“Work absences due to long-term illness hurt the individual, the organisation, and the wider economy. There are plenty of opportunities to bring the number of absences down – we’re simply not making the most of them.”

When it comes to the size of organisations most impacted, small and medium size enterprises (SMEs) with up to 250 employees are hit the hardest. They are currently picking up 76% of the 2023 long-term sick bill totalling £24.7bn.

If trends continue, the costs associated with absence among those with long-term health conditions would rise significantly in the coming years, reaching an estimated £66.3 billion by 2030. This loss would be the equivalent to 2.5% of the UK’s total productivity.

What are the biggest contributors to employees taking 112m sick days a year?

OnePoll research commissioned by Zurich amongst 1,000 employees (from a range of businesses) who have been on long term sick in the last 12 months found that the biggest contributors are mental health issues (44%) and musculoskeletal problems (14%) such as back pain. Those two causes of absence alone cost nearly £6bn each a year to the economy.

“The findings reflect what we are seeing from our customers. With so many people now working from home, musculoskeletal issues are likely to continue to represent a dominant part of the problem, as too many employees will not have the correct home office set up. This, coupled with the widely reported challenge of hospital waiting times, is creating the perfect storm for an increasingly absent workforce.

“But the wider issue here isn’t about people wanting to be off work - the vast majority want to get back to ‘normal life’ as quickly as they can. There is a requirement for multiple interventions from both the Government and employers to make sure people have the support they need to rehabilitate.”

Two-thirds of long-term sick experience anxiety

Further findings from Zurich and One Poll’s survey reveals that over two thirds (64%) of long-term sick experienced anxiety as a result of their time off work. Over half (53%) suffered from depression and 39% loneliness. Most alarmingly, 16% had suicidal thoughts, one in ten resorted to increase alcohol consumption and 5% substance abuse.

Rehabilitation, the unsung hero helping people back to work

Data from the Association of British Insurers (ABI), shows that insurers are already making a major contribution towards reducing the length and frequency of long-term sickness absence. This ensures people do not drop out of the labour market altogether, in turn maintaining the supply of labour.

In 2021, over 1.6m people used the health services available to them through insurance. This encompasses services for prevention, early care, diagnosis, treatment, recovery, and support.

These customers used the services 5.5m times in 2021, 3.5 times per person on average. An analysis of around 16,000 vocational rehabilitation cases found that nearly 9 in 10 (86%) people remained in the workforce following access to rehabilitation services through insurance.

“We’d really like to see the Government set out a long-term roadmap to tackle the issue of workplace health head on and for rehabilitation – the unsung hero which helps people back to work – to be an integral part of this.”