Britain's workforce crisis: Taxing vices to combat sick leave

British employers are struggling with a massive wave of sick leave. The matter is serious, and the government is considering further measures to combat this epidemic. One such measure is raising taxes on alcohol and cigarettes.

Awareness of mental health problems related to overwork is continually growing. Stressful work environments cause increasing talk of burnout, bullying, depression, and anxiety disorders. From the employees' perspective, sick leave issued by psychiatrists is the easiest to obtain - it's difficult to definitively refute mental health issues, and leave related to a psychological crisis is usually issued for several months. This time allows for healing and potential job searching.

The British Institute for Public Policy Research is sounding the alarm. In a report, experts write, "As of the end of 2023, an estimated 900,000 extra workers are missing from work. These 900,000 missing workers could mean an estimated £5bn (CAD 9) in lost tax receipts in 2024, while better population health could save the NHS £18bn (CAD 32) per year by the mid-2030s."

IPPR reports that the work on the report lasted three years and was coordinated by "cross-party experts." "Soaring levels of long-term sickness have been accompanied by rocketing disability benefit claims. The OBR earlier estimated that the combined impact of lost workers and a bigger benefit bill is costing the state around £15 (CAD 27) billion a year," the report's authors add.

Experts note that the number of sick leaves results from a range of issues, including increasingly longer queues to see doctors and civilization diseases, including mental illnesses. Many employees take short health breaks to recover even if they do not leave work entirely. In summarizing the report, the authors write: "Its sweeping final report comes as austerity, and Covid have left the UK the literal sick man of Europe – with long-term health conditions rising, healthy life expectancy stagnating, economic inactivity increasing, a growing mental health crisis, and regional health inequalities intensifying."

The British government is analyzing a range of actions that could potentially reduce the number of people leaving work or taking sick leave. One idea is to increase taxes on cigarettes and alcohol so that those taking time off to indulge in vices would have to return to work to afford these harmful substances.