Stop Subsidizing Stagnation and Start Treating Work as the Cure

Stop Subsidizing Stagnation and Start Treating Work as the Cure

The British state is currently engaged in a massive, expensive, and ultimately cruel experiment in national de-skilling. We are told by the consensus of beige think-tankers and well-meaning policymakers that the surge in economic inactivity—now sitting at a staggering 2.8 million people out of the workforce due to long-term sickness—is a "crisis of health." That is a lie. It is a crisis of incentives.

The prevailing narrative suggests that we simply need more "investment" in the NHS and "compassionate" reform of the benefits system. This is a fundamental misunderstanding of human psychology and economic reality. We have created a system where the path of least resistance is to remain unwell. If you subsidize something, you get more of it. By treating work as a burden that people need to be protected from, rather than the primary mechanism for social and psychological integration, we have effectively trapped millions in a cycle of permanent exclusion.

The Myth of the Unfit Workforce

The conventional wisdom argues that the UK is physically sicker than it was in 2019. This defies logic. We have better medical technology, more awareness of mental health, and a more sedentary, low-risk service economy than any previous generation. Yet, the number of people claiming they are too ill to work has skyrocketed.

The truth is that the threshold for "incapacity" has been lowered to the point of absurdity. We have medicalized the normal stresses of life. Anxiety and low mood, which were historically managed through routine, social contact, and the sense of purpose found in labor, are now valid reasons to exit the economy indefinitely.

When you tell a person they are too broken to contribute, they eventually believe you. The NHS doesn't just need more money to "fix" these people; it needs to stop signing them off. Work is not the prize you get for being healthy; work is often the very thing that makes you healthy. The isolation of the claimant lifestyle is a petri dish for the exact conditions—depression, social anxiety, chronic pain—that keep people out of the office.

Why Your "Inclusive" Hiring is Failing

Business leaders love to talk about "inclusive" hiring for the long-term sick. They create "wellbeing programs" and "flexible pathways" that are, in reality, just corporate theatre. I have sat in boardrooms where executives congratulate themselves on hiring three people with disabilities, while ignoring the fact that their own internal bureaucracies make it impossible for anyone without a PhD in corporate jargon to survive a week.

If a company actually wants to help the economically inactive, they need to stop the patronizing "soft landings." What people need is a high-expectations environment.

  • Structure over "Flexibility": Constant remote work and total flexibility sound compassionate, but for someone struggling with mental health, it removes the external discipline required to stay grounded.
  • Skill Acquisition over Therapy: Stop offering "mindfulness apps" and start offering intensive technical training. Competence is the only real antidote to workplace anxiety.
  • The Radical Truth: Not every job needs to be a "career." We have devalued entry-level, manual, and repetitive work to the point where people feel it is beneath them. Yet, these are exactly the roles that provide the lowest barrier to re-entry and the highest immediate sense of completion.

The Benefits Trap is a Feature Not a Bug

Let's talk about the math that politicians are too scared to touch. The "taper rate"—the speed at which benefits are withdrawn as someone starts earning—is a brutal tax on ambition. In some scenarios, a person moving from sickness benefits into a part-time job might only keep a few pence for every extra pound they earn.

This is an "Effective Marginal Tax Rate" (EMTR) that would cause a hedge fund manager to go on strike.

$$EMTR = \frac{\Delta Tax + \Delta Benefit_Loss}{\Delta Gross_Earnings}$$

If your $EMTR$ is hovering near 70% or 80%, staying at home isn't "laziness." It is a rational economic decision. The system is designed to keep people exactly where they are. We have built a "safety net" that has become a spider's web.

The contrarian solution isn't to just cut benefits—which is the blunt instrument of the right—but to make them entirely portable. You should be able to take your "sickness" support with you into a job for a guaranteed period of 24 months, regardless of how much you earn. We must decouple the financial support from the status of being "incapable."

Mental Health is a Collective Action Problem

The explosion in "work-related stress" claims is the greatest productivity killer of the decade. We have moved from a culture of resilience to a culture of vulnerability. This isn't about being "anti-woke"; it's about being pro-reality.

I’ve seen departments where one person goes off with stress, and within three months, four others follow. It is a contagion. When we validate "stress" as a clinical reason to stop working, we create a vacuum that the rest of the team has to fill, which—predictably—stresses them out.

We need to stop asking "How can we make work less stressful?" and start asking "How can we make people more capable of handling stress?" Resilience is a muscle. If you never use it, it withers. By removing every obstacle and every pressure point in the name of "wellbeing," we are creating an ultra-fragile workforce that breaks at the first sign of a difficult deadline.

The "Back to Work" Industry is a Scam

There is a multi-billion pound industry of "employability consultants" and "outsourced providers" who get paid to move people from one spreadsheet to another. They focus on CV writing and "confidence building."

It’s nonsense.

If someone has been out of work for five years, a shiny CV isn't going to get them a job. They are a high-risk asset. The only way to move the needle is through Wage Subsidies for Results.
Instead of paying a consultant £5,000 to "mentor" a claimant, give that £5,000 directly to a small business owner as a salary offset for the first six months of employment. Put the money where the work is. The market is a better teacher than any government-contracted life coach.

Stop Asking "Why Can't They Work?"

The wrong question is: "What medical condition is preventing this person from working?"
The right question is: "What value can this person provide today, despite their condition?"

There are people with profound physical disabilities and severe neurodivergence running global companies. There are people with chronic pain who show up to construction sites every day. The difference isn't the severity of the illness; it’s the sense of agency.

The UK's approach has been to strip people of their agency in exchange for a meager monthly check. It is a managed decline of the human spirit. We are subsidizing the idea that if you aren't 100% "well," you are 0% "useful."

The data is clear: the longer you stay out of the workforce, the less likely you are to ever return. After two years of inactivity, the probability of returning to full-time employment drops to nearly zero. We aren't "helping" the sick by letting them drift; we are presiding over their professional and social death.

If we want to fix the "sick note" culture, we don't need more doctors. We need a fundamental cultural pivot that recognizes work as a primary health intervention. Anything less is just managing the decay.

Stop "supporting" people into permanent poverty. Give them their agency back and demand they use it. The exit from the sickness trap isn't through a clinic; it's through the front door of a workplace.

KF

Kenji Flores

Kenji Flores has built a reputation for clear, engaging writing that transforms complex subjects into stories readers can connect with and understand.