Overview

• Economic inactivity in the UK has slightly declined to 21.5% but still affects 9.3 million people, with mental health issues being a leading cause.
• One in four young people aged 16-24 have considered leaving work in the past year, with mental health cited as the primary reason.
• The government is preparing to unveil a benefits overhaul targeting rising costs, particularly mental health-related disability claims, which have surged since the pandemic.
• Employers report struggles in retaining staff and are reconsidering benefits and training packages, though many remain hesitant to hire individuals who have been economically inactive.
• Barriers such as long-term mental health conditions, low self-confidence, and skills gaps hinder workforce re-entry, despite 43% of inactive individuals expressing interest in returning to work.