The review will look at how government and businesses can work together to turn the inactivity around in order to get Britain working again, the government revealed today.

The analysis will be one part of the government’s Plan for Change to kickstart economic growth in partnership with businesses, drive up prosperity and raise living standards across the UK.

Over a third of working age people report a long-term health condition and around a quarter are classed as disabled. The latter group is three times more likely to be not in work or looking for work.

“Beginning today, the review will move at pace concluding in the autumn, with Sir Charlie Mayfield meeting businesses and health and disability organisations across the country to identify the scale, trends, obstacles and opportunities for companies when recruiting and retaining ill and disabled people,” the government said in a statement.

“This phase will conclude in spring, with a report based on the findings from his conversations with company bosses, employees who have been supported to stay in work and organisations who help those out of work to inform wider engagement. Recommendations to the government are expected later this year.”

This will be part of the government’s plan to boost employment by breaking down barriers to opportunity and improving people’s living standards through work and life-changing support, building on the latest data from the ONS (Office for National Statistics) this week showing real earnings have increased by 2.5% on the year.

Sir Charlie Mayfield, who was also chair of the British Retail Consortium and chair of the UK Commission for Employment and Skills, said: “Losing people from the workforce because of ill-health or disability is bad for many of the individuals, for the businesses employing them and for the wider economy.

“It’s a growing problem for us all and it’s one that’s more likely to be resolved by business and government working together.

“I’m looking forward to engaging closely with businesses, government departments and the many organisations committed to improving our performance here,” he said.

The review, which will identify measures to help ill and disabled people get into work and stay in work, comes ahead of significant reforms to health and disability benefits expected in the spring.

Rain Newton-Smith, CEO of the CBI, said: “Lower rates of employment for people with long-term health conditions or disabilities is a tragic waste of potential that holds back economic growth and impacts on well-being.

“It denies people the opportunity to improve their personal financial security through work and prevents businesses from using their valuable skills and experience to grow the economy.

“Sir Charlie’s review is a welcome opportunity for business and government to co-design solutions that have a real impact.”

This business engagement is part of the government’s Get Britain Working White Paper progressing reforms with the aim of the UK’s reaching an ambitious 80% employment rate.

As part of the plan, Jobcentres are to change their focus from monitoring and managing benefit claims to skills and careers; mental health support will be expanded to reduce waiting lists in areas with the highest levels of economic inactivity. Mayors will be empowered to join up local work, health and skills support to tackle the root causes of inactivity in their areas, the government said.

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