Health Foundation response to the Office of Budget Responsibility's ‘Fiscal Risks and Sustainability 2023’

David Finch, Assistant Director for Healthy Lives at the Health Foundation, said:

'Today’s OBR report should set alarm bells ringing at No 11 Downing Street. It lays bare the growing burden of ill health on the UK economy, individuals and taxpayers. The rise in economic inactivity due to ill health over the last three years is estimated to have contributed to an annual tax loss of £8.9 billion and led to additional welfare costs of £6.8 billion in 2023–24.

'We welcome further evidence that underlines the trend that ill health and not early retirement, drives economic inactivity, with working age sickness growing steadily since before the pandemic. In contrast, the number of early retirees has fallen below pre-pandemic levels. 

'Once people have fallen out of work due to ill health, it is very difficult to return to work, and the financial implications are huge. Individuals suffer significant loss of earnings and are at greater risk of falling into poverty, profoundly impacting their mental and physical well being.

'Further deterioration in health risks a GDP reduction of 1.5%, thereby costing the Treasury an extra £21.3 billion by 2027/28. Our health is our greatest asset, and this report serves as an urgent reminder that the health of the workforce should also be treated as a key component that supports the economy.'

ENDS

Media contact

Billie Morgan
Billie.morgan@health.org.uk
020 7257 8001