A major government review has revealed a steep rise in workplace sickness linked to mental health, costing the UK economy £85 billion each year and potentially pushing another 600,000 people out of work by 2030. Experts say early mindset development could help reverse the trend.

A growing “economic inactivity crisis”

The Keep Britain Working review, led by former John Lewis chairman Sir Charlie Mayfield for the Department for Work and Pensions, describes an economic inactivity crisis. Since 2019, an additional 800,000 people have been forced out of employment because of health conditions, with mental health issues identified as the main cause.

According to the report:

• £10 billion is lost in sick pay
• £47 billion is lost in output
• £21 billion is lost in reduced productivity

Sickness absences are at their highest level in 15 years. Employers lose an average of £120 in profit for every missed day of work. While the trends are worrying, the review states the outcome is not inevitable.

The report calls for shared responsibility between employers, employees and the health service, replacing the current model that relies heavily on individuals and the NHS. It also emphasises the role of personal accountability, warning that excessive dependence on welfare can lead to a path towards detachment and dependency, rather than recovery and participation.

Government and employers launch new partnership

In response, the government has begun a 3-year partnership with more than 60 major employers, including Tesco, Google UK, Nando’s, British Airways and John Lewis. Work and Pensions Secretary Pat McFadden described it as a “win-win for employees and employers”, intended to reduce absences, increase return-to-work rates and expand disability employment.

The initiative will contribute to the development of evidence-based approaches, followed by a voluntary certified standard planned for 2029.

While mental health dominates the data, the review also cites musculoskeletal issues, aches and joint pain among older workers as significant contributors. It recommends proactive support, including non-clinical case management, throughout a healthy working lifecycle.

Mindset development as prevention

Amid mounting concern, mindset development company Gazing Red2Blue highlights a preventative approach. Founded in 1998 by Martin Fairn, Dr Ceri Evans, Renzie Hanham and John Esposito, the organisation draws on expertise from elite sports and high-pressure corporate environments. Its Red2Blue method has been credited with supporting the New Zealand All Blacks in their Rugby World Cup wins in 2011 and 2015.

Martin Fairn, CEO of Gazing Red2Blue, said the company has helped “elite sportspeople, C-suite executives, and a range of education trusts and schools, to help people better cope with the everyday pressures of life and work, and we know that mindset development can limit mental health issues developing.”

He added that mindset is a learnable skill. “It’s a common misconception in business, and in life in general, that mindset is a problem to be fixed, rather than a skill that can be developed. There is so much that can be done that is easy to implement, can be learned and applied, and is proven to work.”

Fairn welcomed the review’s conclusion that early action is effective. “I welcome the report’s conclusion that intervention can help address the problem and would urge the government to consider how that might be introduced and scaled across the UK’s workforce. I believe enabling and integrating mindset development as a critical skill could be part of the solution. It starts with recognising that anyone can learn and apply the mindset language, tools and techniques.”

He also clarified the difference between mindset and mental health.

•  Mental health is a point-in-time mental state, ranging from coping well to struggling with issues such as anxiety or depression.
•  Mindset is a person’s belief system that shapes how they view the world and respond to success, failure and life events.

“A strong mindset can contribute positively to mental health,” Fairn noted.

Industry and professional bodies respond

The Chartered Institute of Personnel and Development has welcomed the government’s focus on prevention. Its 2025 Health and Well-being at Work report confirms record sickness levels, with mental ill health and musculoskeletal injuries the biggest causes. The organisation continues to promote supportive cultures, training for line managers and inclusive policies.

Dr Roman Raczka, president of the British Psychological Society, urged employers to rehumanise the workplace. He stated: “The workplace itself can be a root cause of poor mental health. Those signed off with sickness, deserve timely access to safe and compassionate care, with support from psychologically informed mental health professionals.”

Sir Charlie Mayfield reiterated the urgency of the issue, warning of an avoidable crisis that could impact GDP by about 7% through lost productivity and stalled careers. He emphasised that employers are in a unique position to build trust and prevent issues from escalating.

A path forward

Fairn said: “Overall, the attention this report brings to the whole issue of workplace-related mental health issues must be a good thing. We believe there is a lot that can be done before mental health issues become a problem, and mindset development is a proven approach that is also easy to learn and apply.”

As the UK confronts rising workplace-related mental health challenges, the combination of new policy measures and practical skills training such as Red2Blue offers hope for a healthier, more productive workforce.