Businesses risk losing billions unless they adapt: report reveals the future cost of dementia
The cost of dementia to businesses is predicted to double, as the number of those living with the condition is set to rise over 1 million, by 2030.
On 8 August 2014 Public Health England (PHE) and Alzheimer’s Society, who recently joined forces to launch the Dementia Friends campaign, release a new report on the future financial implications to the nation’s businesses of dementia, and call on employers to adapt their working environment to support the increasing numbers affected by the condition.
The report, from the Centre for Economics and Business Research (Cebr) reveals that by 2030, dementia caring obligations will cost companies more than £3 billion.
As the population of England ages, the number of people with dementia is expected to rise to 1.09 million by 2030. The report predicts this will have a huge impact on businesses as the number of workers reducing hours, changing work patterns or even quitting, due to the demands of caring, is expected to grow.
Findings also show that the number of people who will have left employment to care for people with dementia is set to rise from 50,000 in 2014, to 83,100 in 2030. Yet, if companies increased their employment rate of dementia carers by just 2% over the years to 2030, for example by offering more flexible terms of employment, the retention of these skilled and experienced staff would deliver a saving of £415 million.
With a growing need for those over the age of 65 to stay in employment, by 2030, the cost of skills and experience lost from the workforce due to dementia will rise from £628 million to £1.16 billion.
Businesses have started to recognise this issue, with 1 in 12 companies (8%) having made attempts to accommodate the needs of a member of staff with dementia, and more than half (52.1%) considering taking such action in the future.
So far more than 20 major businesses have already signed up and are committed to supporting staff and customers with dementia. Over 100,000 employees from businesses including Lloyds Pharmacy and M&S are now Dementia Friends and a host of other companies such as Barclays, Lloyds Banking Group, Argos, BT and Bourne Leisure (Butlins, Haven and Warner Leisure Hotels) have also pledged for their staff to become Dementia Friends.
The report also flags that businesses, which are not sufficiently dementia friendly, will lose out. The value of the ‘dementia pound’, which is the spending power of households affected by dementia, is set to double to £22.7 billion by 2030, from £11 billion in 2014, due to the rise in the number of people affected by the condition.
However, two-thirds (62%) of people with dementia would like banks and shops to have a greater understanding of the condition as currently a quarter (23%) report that they have given up shopping since being diagnosed.
Jeremy Hughes, Chief Executive of Alzheimer’s Society, said:
Thousands of people affected by dementia are forced to give up work and are denied a lifeline because of the failure of organisations to change the way they do business. From the shop floor to boardrooms, dementia affects every workplace; from people struggling with the early symptoms of memory loss at work, to those juggling a job whilst caring for a loved one. As the condition touches the lives of more people, businesses must gear up to support all people with dementia; staff and customers alike.
With dementia affecting millions of people, businesses who ignore the dementia pound do so at their own peril. Alzheimer’s Society is encouraging businesses to commit to become dementia friendly. By increasing staff’s knowledge and understanding of the condition through Alzheimer’s Society’s Dementia Friends, businesses can make small but positive changes to the way they operate.
If you would like a free one hour session to create dementia friends in your work place contact Chris Moon-Willems on 07505103955
