Economic Inactivity Linked to Poor Health and PIP Payments Concentrated in Certain Areas

A new report has revealed a clear link between economic inactivity and poor health. The study, conducted by the cross-party IPPR Commission on Health and Prosperity, has also identified that Personal Independence Payments (PIP) are more commonly claimed in certain parts of the country. The report warns of a stark divide in health and wealth, with northern, midland, rural, and coastal areas particularly vulnerable.

The study found that one in every four economically inactive individuals live in just 50 local authorities, indicating the presence of “bad health blackspots” in Britain. These areas with higher rates of sickness and poor health also experience low productivity, high poverty, and persistent unemployment.

The latest data from the Office for National Statistics (ONS) shows that the economic inactivity rate for individuals aged 16 to 64 is 20.8 percent, equivalent to 8.7 million people. This means that they are out of work, not actively seeking work, or are in full-time education.

The IPPR study highlights a double injustice, as regions with poorer health also face lower household income, higher poverty rates, and lower levels of wealth. Additionally, these areas have higher numbers of people receiving personal independence payments, lower overall wealth, lower average household income, worse early years development scores, and lower rates of NVQ4+ qualifications.

The study found significant disparities in health between different cities. For example, people living in Liverpool are almost three times more likely to be in poor health compared to those in Oxfordshire, and twice as likely to be economically inactive. Overall, individuals living in the most deprived parts of the country are more than twice as likely to be in poor health than those in the most affluent areas, and are approximately 40 percent more likely to report economic inactivity.

The report emphasizes the importance of having a good job for both mental and physical health, as it reduces the risk of premature death. However, it also highlights that work alone is no longer a reliable pathway out of poverty, with 68 percent of working-age adults in poverty living in households where at least one person is employed. In fact, the risk of falling into poverty has more than doubled in the last 20 years, even in households where two people are in full-time work.

The study proposes a framework called Seven for Seven, which outlines the foundations for healthy lives, including aspects such as healthy bodies, safe homes, a great start to life, and freedom from addiction. It further suggests the creation of new health and prosperity improvement zones (HAPI) with the power to invest, raise local taxes, and implement missions in the worst-affected areas. The report recommends empowering regional mayors to introduce local taxes on items like alcohol, junk food, and tobacco. It also calls for a recruitment drive for public health specialists, the establishment of new local apprenticeship opportunities, and the creation of a national health volunteering service.

Professor Donna Hall, IPPR commissioner and former chief executive of Wigan Council, emphasised the need for resources, support, and agency for those working in local government and health services. She added that the new HAPI zones would empower local leaders and enable them to address the growing poverty and ill-health affecting their regions.

Efua Poku-Amanfo, research fellow at IPPR and lead author of the report, stated that there is a compelling case for government spending and action on health, as bad health blackspots are hindering national economic growth and impacting the wellbeing of the entire nation. She further emphasised the need to bridge the gap in health and wealth.

In response to the report, a government spokesperson highlighted their commitment to increasing healthy life expectancy and reducing health inequalities. They mentioned ongoing investments to improve health services and help people live longer, healthier lives. The government’s Back to Work Plan aims to assist up to an additional 1.1 million individuals in finding and maintaining suitable employment, including integrated mental health support. The spokesperson also referred to the Major Conditions Strategy and plans for achieving a smoke-free generation, particularly targeting deprived areas.