Get Britain Working plans announced by work and pensions secretary, Liz Kendall, also include expanding mental health support.
Kendall said: ‘We will make sure everyone, regardless of their background, age, ethnicity, health, disability or postcode can benefit from the dignity and purpose work can bring.
‘We can build a healthier, wealthier nation – driving up employment and opportunity, skills and productivity – while driving down the benefit bill.'
A record 2.8 million people are out of work due to long-term sickness.
The White Paper includes a £240m investment to tackle the root causes of unemployment and inactivity and better join up health skills and employment support based on the needs of local communities.
The Government pledged to empower mayors and councils to join up local work, health and skills support in ways that meet the specific needs of their local areas.
An independent review will be launched into how employers can be better supported to employ people with disabilities health conditions and to keep them in the workplace.
Measures to overhaul the health and disability benefits system will aim to support people to enter and remain in the workplace with a consultation published in the spring.
An additional 8,500 new mental health staff will be provided to expand access to Individual Placement and Support (IPS) for severe mental illness, reaching 140,000 more people by 2028/29. The Government also vowed a prevention first approach through an expansion of Talking Therapies, the Tobacco and Vapes Bill and a range of steps to tackle obesity, as well as £22.6bn in 2025-26 to deliver an additional 40,000 elective appointments a week.
The White Paper sets out a £125m investment in eight areas across England and Wales, to mobilise local work, health and skills support, including funding in three of the trailblazer areas for NHS accelerators to stop people falling out of work completely due to ill health in the North East, South Yorkshire and West Yorkshire.
Christopher Rocks, lead economist for the Commission for Healthier Working Lives at the Health Foundation, said: ‘The employer-led review has the potential to drive a new approach to workplace health. However, the Government should also lead by example by reviewing practices in the health and education sectors, where workers have faced significant pressures.
‘Stable and rewarding jobs enable us to support our families and contribute to society, which benefits our health. We welcome the government's White Paper acknowledging that economic growth depends on a healthy workforce and joined-up approach across Government.'
