The Government’s Keep Britain Working ambitions face a significant challenge as six in ten (62%) employers report persistent levels of health-related exits from work.

Researchers from the Work Foundation and the Centre for Organisational Health & Well-being at Lancaster University surveyed 1,001 senior business leaders across the UK in May 2026 and compared the findings with a similar survey conducted in 2024. They also analysed the latest labour market data from the Office for National Statistics (ONS).

A near-record 2.78 million people remain economically inactive due to ill health, nearly 700,000 higher than before the Covid-19 pandemic. Researchers warn this number could rise again as the workers most at risk of leaving work due to ill health remain least likely to have access to workplace support.

Across 12 key types of health-related support – such as flexible working, enhanced sick pay and access to occupational health – 92% of employers offer at least one type of health-related support. However, on average only 36% of employers offer each individual measure, suggesting that support is patchy rather than comprehensive. Critically, this figure further reduces for those who employ higher levels of staff who face wider health risks:

• Only one in five employers whose workforce is dominated by older staff (aged 55+) offer key workplace health support (21%) – the largest gap in the dataset at 15.3 percentage points below the survey average
• Organisations with overwhelmingly low-income staff perform, on average, 13.3 percentage points lower, with lower uptake on every individual measure. A quarter (26%) of employers with a large share of low-income employees also reported a rise in health-related exits compared to 15% of all employers
• A quarter of employers (26%) with primarily female employees, 10 percentage points below the sample average
• The picture for employers where young workers (aged 16-24) make up the majority of staff sits 1.6 percentage points below the sample average. One in five employers with large youth workforce (20%) have seen rises in health-related exits (1.3 times the average).

Ben Harrison, Director of the Work Foundation at Lancaster University, said: “As the debate surrounding cuts to welfare expenditure heats up, the need to ensure employment is accessible and sustainable for those struggling with their health is fundamental. Yet workers facing some of the greatest health pressures are often among the least likely to benefit from policies that could help them remain in work.

“In particular, there are big challenges for workers in smaller organisations. One in four small employers report that they offer no health support provision, while virtually all large employers do. This has significant implications for those living in smaller towns and cities, who are more likely to rely on smaller businesses for employment.

“If more workers are to be supported to remain in, and return to, the workplace after a health setback, the priority must be to ensure effective workplace health support reaches those workers and workplaces that need it most.”

Employers are confident in their approach but falling short in practice

Employers rate their ability to support worker health needs highly. Across 15 metrics, four in five employers (80%) reported being well or very well equipped to respond to employee health needs, and 87% rated their overall approach positively. Confidence is particularly high around implementing flexible hours, assessing workplace health risks and supporting workers returning from ill-health.

However, the research indicates these self-evaluations do not always translate into good practice. Despite 85% of employers feeling confident in how well they perform in supporting staff with assessing physical health risks, three in five employers (58%) say they do not offer paid time off for medical appointments and only 39% report providing occupational health access. When asked about the barriers to providing these kinds of support, the cost of health benefits and wellbeing initiatives was the most frequently cited factor given by employers (33%).

This disconnect is more pronounced in ‘upstream’ areas of support that can make the most meaningful difference

Only 44% of employers report designing jobs to support health needs and fewer take proactive steps to analyse and assess workplace sickness absence and risks. Researchers suggest gaps could contribute to delays in the early diagnosis of problems at the point at which treatment might be most effective.

The prevention gap extends beyond access to medical care. It appears psychosocial risks – including high workloads, low job control and poor role clarity – remain significantly underassessed by employers. While 83% of employers feel confident supporting staff with mental health conditions, only two in five (41%) reported formally assessing mental health risks, despite this being a legal requirement.

Professor Stavroula Leka of Lancaster University, said: “Despite signs of progress, access to workplace health support remains uneven, with workers in smaller businesses, lower-paid roles and higher-risk sectors most likely to miss out.

“Cost is often cited as a barrier, but prevention does not always require expensive interventions. Employers can do much more to design work in ways that protect health and wellbeing. Our findings suggest psychosocial risks – such as excessive workloads, low job control, poor role clarity and inadequate support – remain significantly underassessed. We need practical guidance to help employers, particularly SMEs and those in high-risk sectors, make healthy job design a core part of good business practice.”

The Work Foundation say the Government must support policies capable of reaching beyond employers already engaged in this agenda and addressing the structural barriers facing vulnerable workers and the employers who employ them. Recommendations include:

• Embed prevention and healthy job design as a core employer responsibility: Government should work with the Health and Safety Executive, ACAS and sector bodies to develop practical guidance on healthy work design, particularly for SMEs and employers in high-risk sectors
• Establish local work and health hubs for SMEs: Government and combined authorities should invest in local hubs that provide employers with access to health support expertise, HR capability and management guidance
• Pilot and consult on additional workplace health policies: Measures such as supported workdays and a statutory right to paid time off for medical appointments could help more workers access healthcare and remain in work during periods of ill health and reduced capacity.

The full findings will be launched at the second Work and Health Summit 2026 in Westminster on Tuesday 23 June. Speakers include Sir Charlie Mayfield (Keep Britain Working Review), Professor Dame Carol Black (Chair, Centre for Ageing Better), Paul Nowak (TUC), Martin McTague (Federation of Small Business) and leaders from JLR and BT.

Paul Nowak, TUC general secretary, said: "Improving the quality of work is one of the best ways to get people to stay in work.

"Poor job quality is a key driver people leaving work due to ill health and becoming economically inactive.

“Giving working people more security of hours and predictability over their lives - as well as stronger rights at work - will help create a happier, healthier and more robust workforce.

"That’s why the government's Employment Right Act is so important. Delivering stronger sick pay, better flexible working and a ban on exploitative zero-hours contracts will boost workers’ health, well-being and productivity."

To read the report – Unequal support: Employer views on workforce health in 2026 – please visit the Work Foundation at Lancaster University website: https://www.lancaster.ac.uk/work-foundation/publications/unequal-support