Sickness costs UK economy $200.3 billion

By Jennifer Hill

LONDON (Reuters Life!) - Ill-health costs the British economy over 100 billion pounds ($200.3 billion) a year, more than the entire annual budget of the state-run National Health Service (NHS), according to a report.

Carol Black, national director for health and work, said the annual economic cost of sickness absence is equivalent to the entire gross domestic product of Portugal.

Benefit costs, additional health costs and foregone taxes make up the bulk of the bill, at more than 60 billion pounds.

The rest is made up of the cost of the care given by family and friends, that to employers of having someone absent from work and other associated costs.

Black proposed a number of reforms, including replacing outdated doctors' paper-based sick notes with an electronic "fit note", stating what people can do, instead of what they cannot.

"Taken together, the evidence provides a clear and compelling case. In short, we cannot go on as we are," she said.

"I hope this review will lay the foundations for urgent and comprehensive reform.

"But there are difficult and challenging messages for everyone, whether they are politicians, healthcare professionals, employers, unions or individuals."