Around 3.7 million people are working with a ‘work limiting’ health condition restricting the type or amount of work they can do.
This is according to analysis from the Health Foundation which found this figure has risen by 1.4 million people over the past decade nearing 4 million and almost matches the number of people with work-limiting conditions who are not in work.
Since the pandemic, 470,000 more people are out of the workforce on ill-health grounds, while many more continue to work despite long-term health problems.
The analysis highlights a persistent earnings gap between those who report work-limiting conditions and those who do not.
The “health pay gap” for full-time workers is £2.50 per hour – meaning that people with a work-limiting health condition, on average, earn 15% less.
The research also indicates work-limiting conditions are more common among women and older workers.
The data shows almost 22% of women are affected by such conditions compared with around 17% of men, while 28% of 55-64 year olds have these conditions compared with around 15% of 16 to 34 year olds.
Around 12% of people with a university degree of equivalent have some form of work-limiting condition. This compares to more than 40% of those who have no qualifications at all.
It also reveals differences between ethnic groups, with people of Bangladeshi ethnicity most likely to have a work-limiting condition, with more than 20% affected by such conditions.
People with work-limiting conditions are underrepresented in professional and managerial roles with less than 10% holding such roles.
Meanwhile, the trend is set to continue – with projections from the Health Foundation’s REAL Centre showing that around 500,000 more working-age people will be living with major illness by 2030.
Supporting these findings, the research revealed the rate of work-limiting conditions has grown fastest among younger workers, doubling in the past decade. This means a 16–34-year-old employed in 2023 is as likely to report a work-limiting condition as someone aged 45–54 years 10 years ago.
And while across the whole workforce, musculoskeletal and cardiovascular conditions remain the most common form of work-limiting health condition, the increase in work-limiting conditions is being driven by sharp increases in reported mental ill-health, particularly among younger workers.
The analysis has been released ahead of next week’s Autumn Statement, amid BBC reports from earlier this week claiming the chancellor will announce tighter sanctions for those out of work claiming benefits as part of the government’s drive to tackle economic inactivity.
It has been published to coincide with the Health Foundation’s announcement of a new independent Commission for Healthier Working Lives.
The Health Foundation said the findings suggest that the government and employers need to find new and better ways to encourage people to return to the workforce and help employees remain at work and in good health.
It added that over the next 18 months, the Commission for Healthier Working Lives will partner with expert organisations to develop an evidence base and engage with employers, trade unions and other stakeholders to build a shared understanding of the growing challenge of working-age ill-health and build a consensus on the action needed.
Dr Jennifer Dixon, CEO at the Health Foundation, said: “With 3.7 million working-age people in work with a health condition that is ‘work-limiting’ and 2.6 million economically inactive due to ill health, the country has a significant problem.
“The impact of poor health on individuals and their families, whether they are in work or not, is considerable. And for the country, poor health in the working age-population will drag down productivity, the economy and add a huge avoidable burden on public services and employers.
“Fresh thinking and action is now needed, which is why the work of the Commission for Healthier Working Lives will be crucial.”
Sacha Romanovitch OBE, CEO of Fair4All Finance and chairwoman of the Commission for Healthier Working Lives, added: “It’s really concerning that someone in full time work with a health condition is likely to earn £2.50 less an hour than someone without one.
“It’s no surprise then that this will have a negative impact on their financial resilience and overall wellbeing.
“This analysis further highlights the impact that declining working-age health has on us all.
“It’s so important that we tackle inequality wherever we find it, and I look forward to leading the new Commission for Healthier Working Lives. Together we will contribute to lasting positive change for those in work, and help the government and employers find new opportunities to better help people thrive in their place of work.”