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How do you solve a problem like productivity?


Productivity is proving a tough nut to crack. Worryingly, there is a glaring omission from the Government’s recently published Plan. It doesn’t mention the nation’s wellbeing.  A passing word is dedicated to plans for the devolution of health powers – but nothing on the relationship between wellness, work and wealth creation. This is perhaps unsurprising. In the lead up to May’s election the Health Secretary had a favourite catchphrase. He would tell us that "a strong NHS needs a strong economy” - economy first, health second.

Actually it should be the other way round. We all know that our productivity at work suffers when we’re unwell, tired, stressed or distracted by the health of family members. Often our job is the primary source of our anxiety. During the working week we try to look after ourselves, eat fruit and vegetables, exercise, keep alcohol consumption down and go to bed early on school nights. But the strains of modern life do inevitably have an impact on our performance.

Evidence about the costs of illness to our economy is overwhelming. The OECD puts the price of mental ill health to the UK economy at £70bn – about 4.5% of GDP each year, including productivity losses and NHS services. An LSE study suggests the costs of carers leaving employment in England amount to around £1.3 billion a year, including reductions in earnings and tax receipts. Estimates of work-related ill health show it costs as much as £13.2bn. The loss of potential is infinite.

To be a productive society we need to be a well society. That means supporting carers, prioritising mental health and promoting physical activity. The Government must flip its thinking – proper health and care services – preventative and reactive - aren’t a 'nice-to-have' in good times, they are a 'must-have' to enable good times. Generous funding is not a drain on the public finances or a driver of the deficit – quality services are the lifeblood of a flourishing economy and society. They propel productivity and wealth creation.

Ultimately a narrow, austerity-based politics can’t deliver wellness or tackle the productivity puzzle. A plan without health at its heart – and a genuine invest to save agenda - is destined to fail.

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