A new report from the British Chambers of Commerce (BCC) warns that the UK’s growing health crisis is holding back economic growth and worsening labour shortages. The Growth Through People: Making Health Work report reveals that almost 2.8 million people, around seven per cent of the UK workforce, are currently out of work due to long-term sickness, costing the economy at least £130 billion a year. More than half of those inactive because of ill-health cite depression, anxiety or nervous disorders.
In Cambridgeshire and Peterborough, the challenge is also clear. The latest regional analysis shows:
- 81,300 people of working age (15.3%) are economically inactive for reasons other than study, equivalent to one in 6.5 residents.
- Long-term sickness is the second biggest driver of inactivity, with NHS backlogs still a major barrier. Only 56.9% of patients in the region started treatment within 18 weeks in May 2025, compared to the 92% target.
- Over 51,000 people with a work-limiting illness or disability are out of work locally, with employment rates significantly lower in Fenland (50.3%) and Peterborough (55.8%).
- More than 67,900 residents, one in ten of the working-age population, rely on out-of-work benefits, with rates highest in Peterborough (18.2%) and Fenland (15.8%).
- Cambridgeshire and Peterborough is one of 15 vanguard areas delivering the WorkWell pilot, which has already supported more than 1,500 people with a Thrive in Work or Return to Work Plan since November 2024. This programme has been commissioned by the Integrated Care Board (ICB) and is funded by the Department for Work and Pensions (DWP).
One-third of local businesses are concerned about the impact of long-term sickness on staff retention, citing heavier workloads for colleagues and pressure to find cover. To respond, the Cambridgeshire and Peterborough Combined Authority (CPCA) is developing Connect to Work, a fully funded programme of supported employment for economically inactive adults and those at risk of becoming inactive. Starting in 2026, the £14–15 million initiative will run for four and a half years and support 4,200 people with health conditions or other barriers to retain their place in employment or move into sustainable jobs, alongside an extended all-age Careers Service, apprenticeships, skills bootcamps and paid internships for employers.
Charlotte Horobin, Chief Executive of Cambridgeshire Chambers of Commerce, said:
“The BCC’s report makes clear the scale of the challenge we face, and we see that reflected here in Cambridgeshire and Peterborough. Too many people are out of the labour market because of long-term sickness, and that represents a huge loss of skills, talent and opportunity for our businesses and communities. Employers want to play their part in creating supportive workplaces and opportunities for people to thrive, but they cannot do it alone. That’s why collaboration is so important, bringing together business, education, health and government to break down barriers, support wellbeing, and ensure that more people can access the good jobs our region has to offer.”
Andrea Wood MBE, Assistant Director of Skills and Employment at the Combined Authority, said:
“We know that work is good for health, and good health is essential for work. That’s why we are embedding health into our wider approach to skills and employment through the soon to be published Get Cambridgeshire & Peterborough Working Plan and initiatives such as Connect to Work. By working with businesses and providers, we can help more people overcome barriers, support employers to recruit and retain talent, and build a healthier, more productive regional economy.”
Local employers, educators and training providers can learn more at the next Quarterly Regional Labour Market Analysis Webinar on 2 December, hosted by Cambridgeshire Chambers of Commerce, where Andrea Wood will present the Get Cambridgeshire & Peterborough Working Plan and outline how businesses can engage with Connect to Work.
Free places can be booked at the following link:
https://www.cambridgeshirechamber.co.uk/event/quarterly-regional-labour-market-analysis-webinar-9/