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That doesn't really line up with new Labour achieving (at the time) record levels of employment, nor does it line up with the data on the amount of people claiming sickness absence: source (ONS)
As you can see, it fell from a rate of 3% in 1997 to 2.2% in 2010. It never increased under Labour.
Now, in fairness, it did drop to 1.8% for the Tories, but once COVID hit, the backlogs created for the NHS (in significant part due to the deterioration of the NHS), we have been unable to bounce back quickly.
The data also shows 184 million days were lost in 1997, which labour got down to 132 million in 2010. It remained stagnant under the Tories, then ramped up after Covid.
Seems to me like Labour were massively successful in reducing sickness leave.
So coming back to this, tbh (to me) that sounds like it could be the usual bashing of benefits "scroungers". The data doesn't back it up, people just thought Labour's generous benefits was making everyone be lazy, facts be damned.