AXA Health calls for action to tackle UK workforce health crisis

AXA Health is calling on the UK Government and employers to take action in three priority areas to tackle economic inactivity caused by poor health.

The report ‘Health and work: Improving the resilience of the UK workforce’ comes at a crucial time, ahead of the Government-commissioned Keep Britain Working Review, which will outline recommendations to reduce health-related economic inactivity and help more people return to, or stay in, work. Finding effective and sustainable solutions is imperative and the implementation of the policies analysed in the report could generate benefits of up to £1.3bn a year.¹

The research identifies three priority actions for Government and employers:

1. Greater Transparency on Workplace Health

Requiring large companies to disclose how they support employee health could drive cultural change and increase uptake of employer-provided healthcare solutions. A 25% increase in adoption of insurance-based solutions could yield economic benefits of £750 million annually.

2. Mental Health Training for Line Managers

Equipping line managers with the tools to support mental wellbeing in the workplace can help prevent mental health issues from escalating. Standardising training and offering grants to SMEs could generate annual benefits of up to £175 million through reduced sickness absence and improved productivity.

3. Improving Mental Health Support in Schools and Colleges

Mental ill health among children is rising and is having a significant impact on working parents. Greater investment in school-based support such as Senior Mental Health Leads and extending mandatory health education to post-16 learners could save employers’ costs from the knock-on effects on working age parents. Even a modest fall of 5% of these costs could save employers £400 million a year. This is a serious issue so getting to the root cause and ensuring early intervention is key.

Working with WPI Economics, AXA Health commissioned an analysis of over 30 policy interventions, from a range of think tanks, government bodies, and business and campaigning organisations to help identify those which could have the most significant impact on workforce health.

Heather Smith, CEO, AXA Health, said: “The health of the UK workforce is not just a social issue, it’s economically imperative that it is prioritised. Our research shows that with the right policies and employer action, we can support healthier lives, reduce costs to employers and improve the UK economy. It’s time to move from awareness to action.”

Over 2.8 million working-age people are currently inactive due to long-term illness². Younger workers in particular are facing a growing mental health crisis³, with a 77% increase in work-limiting conditions among 16–24-year-olds over the last decade.⁴

AXA Health believes adopting the suggested policies will have a transformative impact on workforce health, but it will take a coordinated effort between Government and businesses to deliver real change.

Heather Smith added: “We urge the Government to adopt these pragmatic, high-impact interventions to begin to address the issue and provide tangible benefits for businesses, individuals and taxpayers. Building on the health and wellbeing support many businesses including AXA already provide for their employees, we can keep Britain working and ensure our economy is supported by a resilient, healthy workforce.”

Joe Ahern, Director of Policy, WPI Economics said: "The workforce health crisis is increasingly well-understood but the challenge is to translate that understanding into tangible action. Based on a comprehensive analysis of potential policy solutions, this report recommends three practical steps that can be taken to begin to shift the dial.

"Critical to the success of all of these policies will be effective collaboration and partnership between employers, government, and the insurance sector."

To access the full report, visit: Health and Work: Improving the resilience of the UK's workforce

_{1 WPI Economics and AXA Health (2025), Health and work: Improving the resilience of the UK workforce}

_{2 ONS (2025), LFS: Econ. inactivity reasons: Long Term Sick: UK: 16-64:000s:SA.}

_{3 Resolution Foundation (2023), Left behind: Exploring the prevalence of youth worklessness due to ill health in different parts of the UK.}

_{4 The UK Government (2025), Keep Britain Working Review: Discovery.}