The Government is “barking up the wrong tree” when it comes to why people are no longer working, experts have claimed – suggesting long-term sickness is the main source of the problem
The report adds that when using the same definition as the Chancellor, but with the benefit of an additional three months of data, the increase in the number of economically inactive people is now 516,000 – but the number in the “retired” category has actually fallen.
This could reflect NHS pressures, as those who would otherwise have been treated or had their chronic condition better managed – and so would have been able to work – now find themselves long-term sick, as they wait for treatment or live permanently in poorer health. “Policy solutions which aim to reduce early retirement or to encourage the retired out of retirement are likely to have only limited effect in reversing recent trends. Instead, the policy effort needs to be focused around understanding why flows into long-term sickness have grown and on early intervention to prevent people’s health from deteriorating.”
“Without urgent and targeted research and action we risk a generation of working-age adults with poorer health, employment and productivity as a lasting legacy of the pandemic.”
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