30 Apr 2025
by Dawn Lewis

Why understanding the UK’s health gap has become a strategic imperative

What is the health gap and why does it matter to employers? The first report in REBA’s latest trilogy, in partnership with Mercer Marsh Benefits, looks at this growing issue and details why benefits governance has become so important as employer-funded health benefits evolve. 

The UK’s health gap - the disparity in employment rates and opportunities between healthy workers and those with health conditions - is a growing challenge for businesses.

It is having a significant impact on workforce health. More than 2.5 million people are out of work due to long-term illness and poor health is costing businesses £150 billion annually, according to Office for National Statistics data.

As a result, employers are being called on to step in — not just as providers of benefits, but as architects of better health outcomes.

Reward and benefits professionals must view this health gap not just as a societal issue but as a strategic business risk.

This growing risk, coupled with a climate of rising medical cost, an ageing workforce and mounting mental health concerns, highlights why the traditional model of employer-funded benefits is under pressure.

This first report in this trilogy on the UK’s health gap, in partnership with Mercer Marsh Benefits, makes a compelling case for stronger benefits governance to address these issues. 

It finds that grounding decisions in data, aligning with workforce needs, and taking a proactive approach to healthcare will be vital in bridging the health gap.