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Poor health in Wales that prevents people working costs almost £20 billion a year

Published: 30 March 2026

Ill-health and disability that prevents people from working costs approximately £19.4 billion a year in Wales.  That’s according to new findings from Public Health Wales.

This cost includes lost working days due to sickness absence, people of working age who are out of work due to illness and not seeking work, informal care giving related to illness, lost tax revenue, NHS costs and benefits payments.

Taking part in secure, fair paid work helps people stay healthier for longer. It provides a sense of purpose and money for healthy food and a secure home to keep them and their family healthy. Providing early support to help people enter and stay in good work helps not just those families, but also the wider economy. Strengthening financial security is key to improving health and building a stronger, inclusive Welsh economy. 

Ciarán Humphreys, Consultant in Wider Determinants of Health for Public Health Wales said: “In Wales, many people spend more of their lives in poor health, because the building blocks we need to keep us healthy, such as decent housing or good, fair work, can be weak or absent. We have seen a rise in people out of work in recent years relating to ill-health, especially mental health among younger people, and musculoskeletal problems in older ages.

People with health conditions are more likely to enter work with early, tailored support, and to stay in work with engaged, flexible, supportive employers. This research shows the economic implications caused by ill-health and disability keeping people out of work, demonstrating the importance of investing in prevention to keep people healthy and support participation in fair work.” 

Total cost estimates:

Cost element

Description

Estimate

Economic inactivity due to ill-health

Lost output due to working-age ill-health which prevents work

£8.2billion

Sickness absence

Lost output due to sickness absence

£2.9billion

Informal care giving due to ill-health

Lost output due to working age carers caring for working age sick

£2.3billion

NHS cost

The additional costs to the NHS when someone with a health problem is economically inactive rather than economically active

£155.6million

Benefits payments

Cost of social security benefits related to health conditions that prevent people from working

£2.4billion

Exchequer flowbacks

Tax and National Insurance foregone due to health-related worklessness

£3.4billion

Total

£19.4billion

 

HEALTHY WORKING WALES

Healthy Working Wales is a free national programme that aims to improve health and prevent ill-health at work by supporting employers in Wales. It is funded by the Welsh Government and delivered by Public Health Wales.  

It can help support employers to: 

  • Create healthy and safe working environments and practices
  • Take action to improve the health and wellbeing of staff and promote healthy behaviours
  • Prevent and manage sickness absence, support return to work effectively, and prevent people from falling out of work due to ill-health
  • Support those with chronic conditions to stay in work

The team have recently developed a new Employer Survey Tool which can be used to gauge a workplace’s current level of health and wellbeing. 

They can then go on to request a Workplace Health Adviser to get free, one-to-one expert advice to improve health and wellbeing in the workplace.

Consultant in Public Health, Oliver Williams said, “Healthy Working Wales gives employers clear, practical support to protect and promote staff wellbeing. When employers invest in staff health and wellbeing, they create stronger, happier, more productive workplaces. For every £1 spent on supporting the mental health and wellbeing of their workforce, employers get about £4.70 back in increased productivity.”

CASE STUDIES:

Pentan Architects, based in Cardiff, have been proud participants in the Healthy Working Wales scheme for 7 years.

Claire Griffiths, Associate Director and Practice Manager said: “As a team, we look after one another. The wellbeing of our team, both physical and psychological, has always been fundamental to the practice. Health comes first. We encourage a supportive workplace where people enjoy coming to work and feel able to bring their whole selves to the office. Joining Healthy Working Wales gave us a clear framework to build on this ethos and to strengthen the way we promote health and wellbeing across the practice.

“We’ve delivered a wide range of initiatives, from expert‑led health talks on prostate cancer, dementia, breast cancer and HIV awareness for World AIDS Day, to sessions on healthy eating, anxiety‑coping techniques and a dedicated anxiety workshop. We’ve also offered blood pressure monitoring and signed the Menopause Workplace Pledge to ensure colleagues feel supported at every stage of life.

“Our wellbeing programme includes practical support such as flexible working, private medical insurance, the Cycle to Work scheme, first aid training, team breakfast meetings and access to free physiotherapy sessions. We’ve also organised away days, including canoeing in Symonds Yat and outdoor activities at Llandegfedd Lake, which have helped strengthen team connection and morale.

“One of our most ambitious activities was the Healthy Workplace Challenge, where the team collectively ran, swam, cycled, walked and hiked over 2,500km in a single month. The winner and two runners‑ups received vouchers and the whole team embraced the challenge, and it was a great way to keep everyone active and engaged.

“People are so much more than their job. We know how important it is for our team to look after their health and wellbeing as well as their workload, and we’re committed to supporting them in doing both.”