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Presenteeism costing the economy billions a year

The cost of staff sickness increased from £73bn in 2018 to £103bn in 2023 because of illness, injury or other health conditions in the workplace

People working through illness, or ‘presenteeism’, is costing the economy billions of pounds every year, according to a new report. Research from think tank The Institute for Public Policy Research (IPPR) found that the cost of staff sickness has increased from £73bn in 2018 to £103bn in 2023. Most of the increase in cost to businesses was because of lower productivity, with employees not fully functioning in the workplace because of an illness, injury or other health condition.

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Dr Jamie O’Halloran, a senior research fellow at the IPPR, said: ‘Too often, UK workers are being pressured to work through sickness when that’s not appropriate – harming their wellbeing and reducing productivity. This can be because of a bad workplace culture, poor management, financial insecurity or just weak understanding of long-term conditions among UK employers.’

According to the IPPR report, employees now lose the equivalent of 44 days of productivity on average because of working through sickness, up from 35 days in 2018. Moreover, it found that workers in the UK are among the least likely in Europe to take sick days.

The IPPR warned that growing sickness will lead to people living longer in poor health, as well as posing a ‘grave fiscal threat’.

Dr Halloran said that the ‘hidden’ productivity cost of working through sickness should ‘catalyse’ a change. ‘We should strive to make sure the work we do is good for our health, that we have the time to recover when we need it, and to ensure businesses both contribute to and benefit from population health. This would protect workers, boost profits and deliver growth.’

Responding to the report, a spokesperson for the Department for Work and Pensions said: ‘No-one should be forced to choose between their health and financial hardship, which is why we plan to strengthen statutory sick pay so it provides a safety net for those who need it most.’