Employee sickness absence costs UK businesses an estimated £11.8bn in lost profits in 2025, according to new research based on Office for National Statistics data, underscoring the growing economic impact of workplace illness on firms already facing tight margins.
The analysis, produced by Bowmore Financial Planning, found that workers in the private sector took around 98 million sick days over the year, with each absence costing businesses an average of £120 in lost output and profit, based on a government-commissioned assessment published in March 2026.
Across both the public and private sectors, UK workers are estimated to have taken 149 million sick days in total.
The findings highlight the significant financial strain on employers from illness-related absences, particularly as firms continue to grapple with broader cost pressures and productivity challenges.
Small and medium-sized enterprises appear to be disproportionately affected, with employees in organisations employing fewer than 50 staff accounting for around 47 million sick days.
That equates to an estimated £5.6bn in lost profits for SMEs alone, raising concerns about resilience in the small-business sector, where limited headcount can make absences more disruptive and costly.
By contrast, larger organisations are more likely to mitigate the impact through workplace health schemes, including private medical insurance, which can speed up access to treatment and reduce time away from work.
However, smaller firms are often holding back on similar investments due to cost constraints, leaving them more exposed to prolonged absences and productivity losses.
Industry figures suggest increasing employer interest in private medical cover as a tool to reduce treatment waiting times and reduce sickness-related disruption.
Gill Millen, managing director and head of Bowmore Corporate Benefits at Bowmore Financial Planning, said the scale of absence costs was prompting more companies to consider private healthcare provision for staff.
The data adds to growing evidence that workplace health is becoming a key cost and productivity issue for UK businesses, with absence levels carrying a measurable financial impact across the economy.
Gill Millen said: “Waiting times to see an NHS specialist have ballooned in recent years and now sickness absence cost UK businesses billions a year.”
“The cost can be particularly severe for smaller firms. Covering for absent staff can quickly strain their finances, and even a few long-term absences can make it difficult to keep the business running.”
“Having private medical insurance is becoming essential for small businesses as it help prevents costs from spiralling, often at a much lower cost that many would expect.”
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