CBI responds to Work and Pensions Secretary’s speech on boosting employment and tackling economic inactivity

John Foster, CBI Chief Policy & Campaigns Officer, said:

"The government is absolutely right to make tackling economic inactivity and boosting personal financial security a key priority. Economic inactivity remains too high and it’s clear that more must be done to unlock the potential of the UK’s workforce.

“While there are signs that pressures in the labour market are cooling, firms are still struggling to find the staff to power their ambitions – putting a dampener on investment and growth when we need them most.

“Ensuring a more joined-up approach to tackling economic inactivity that is more locally responsive and which builds-in efforts to tackle long-term ill-health can help unlock the untapped potential within the labour market. Delivering this programme of reform will require close partnership between government and business to enable the meaningful change we all want to see.

“Employers also have a role to play here, with many firms already providing healthcare support to their workers – including preventative measures. By making health support for employees tax free, particularly in areas like Employee Assistance Programmes and early occupational health referrals, we could really ramp up these efforts and make a significant contribution to improving staff wellbeing.”