AXA Health urges government action on workforce health

AXA Health has called on the government and employers to implement targeted measures to tackle rising economic inactivity linked to poor health, warning that the UK workforce faces significant challenges without urgent intervention.

In a new report, Health and Work: Improving the resilience of the UK workforce, the insurer identified three priority areas for action, estimating that successful implementation could deliver economic benefits of up to £1.3bn annually.

The report comes ahead of the government’s Keep Britain Working Review, which is expected to set out proposals for reducing health-related economic inactivity.

AXA Health CEO Heather Smith said: ‘The health of the UK workforce is not just a social issue, it’s economically imperative that it is prioritised. Our research shows that with the right policies and employer action, we can support healthier lives, reduce costs to employers and improve the UK economy. It’s time to move from awareness to action.’

The report, produced in partnership with WPI Economics, assessed more than 30 policy interventions and concluded that three measures could deliver the most significant impact: greater transparency on workplace health; mental health training for line managers; and improved mental health support in schools and colleges.

On transparency, the report says large companies should be required to disclose  how they support employee health. It estimates that a 25% increase in the use of insurance-based health solutions could generate economic benefits of £750m a year.

In addition, the report concludes that standardised mental health training for managers and grants to help small and medium-sized enterprises implement support could reduce sickness absence and improve productivity, potentially saving £175m annually.

It also argues that rising mental health issues among children are placing strain on working parents. Expanding mental health resources in education, including senior mental health leads and mandatory health education for post-16 students, could deliver £400m a year in savings to employers if even 5% of associated costs were reduced.

Over 2.8 million working-age people in the UK are currently inactive due to long-term illness, according to the report, while there has been a 77% rise in work-limiting health conditions among 16–24-year-olds over the past decade.

Smith added: ‘We urge the government to adopt these pragmatic, high-impact interventions to begin to address the issue and provide tangible benefits for businesses, individuals and taxpayers. Building on the health and wellbeing support many businesses including AXA already provide for their employees, we can keep Britain working and ensure our economy is supported by a resilient, healthy workforce.’

Joe Ahern, director of policy at WPI Economics, said: ‘The workforce health crisis is increasingly well-understood but the challenge is to translate that understanding into tangible action. Based on a comprehensive analysis of potential policy solutions, this report recommends three practical steps that can be taken to begin to shift the dial. Critical to the success of all of these policies will be effective collaboration and partnership between employers, government, and the insurance sector.’