London, UK – Obesity and excess weight are costing the UK economy £126 billion a year, including £31 billion in reduced productivity, a new study finds.
Two thirds of adults in the UK are living with obesity or excess weight. New analysis, commissioned by innovation foundation Nesta and conducted by Frontier Economics, reveals the productivity cost of the UK's escalating obesity crisis. At £31 billion a year, the amount is equivalent to cutting 3p off the rate of income tax. It is more than the entire additional funding settlement for the NHS, announced in the recent Comprehensive Spending Review.
Productivity growth - the amount of goods and services produced by a country, compared to the amount of work and resources used to make them - is low in the UK compared to nations with comparable economies.
The new report estimates that obesity and excess weight is contributing to the UK’s productivity problems. This is due to health issues causing lower productivity while at work, more sick days, higher unemployment and lost working years due to early deaths.
The report’s analysis of the cost of obesity and excess weight in lost productivity is twice that estimated in a previous 2023 study (£15 billion). This is in large part due to the analysis being the first of its kind to include estimates for obesity-related early mortality and the impact of obesity on productivity among those at work. For example, people who are living with obesity are more likely to experience health problems including limited physical mobility and higher rates of mental health difficulties.
In addition, the report finds that the overall yearly cost of obesity and excess weight to the UK economy is as high as £126 billion. This is primarily from costs through years of good quality life lost to weight-related conditions (£71.4 billion), such as type 2 diabetes, cancer, high blood pressure, heart disease, strokes and weakened bones, alongside the costs from lost productivity (£30.8 billion), costs to the NHS in treating obesity-related conditions (£12.6 billion), financial costs in formal social care (£1.2 billion) and costs in lost work time and opportunities from providing informal care (£10.5 billion).
Nesta has strongly welcomed the focus on obesity in the government’s forthcoming 10 Year Plan for Health. Reducing obesity and excess weight would unlock significant health and economic benefits. The analysis shows that if obesity and excess weight fell by 5% each year for the next five years - reducing obesity prevalence from 32% to 25% by 2030 - the UK would see productivity gains of £24bn over five years.
Tim Leunig, chief economist at Nesta said: “We have known for years that obesity is a terrible problem for our nation’s health. This analysis shows that it is also a significant economic issue. Allowing obesity to continue to rise creates another economic headwind - at a time when the country is already struggling.”
Henry Dimbleby, health campaigner and former government food tsar said: “We’ve created a food system that’s poisoning our population and bankrupting the state. This report shows that poor diet now costs the UK a shocking £126 billion a year. That’s not a crisis. That’s a collapse. If we’re going to stop it, we need to act together—government, business, civil society. Because no one can afford for this to carry on.”
Nesta previously published the most comprehensive assessment to date of the impact of policies designed to reduce obesity. The most effective combination of policies, including mandatory healthiness targets for retailers and increased access to GLP1s, would reduce obesity by around 50% over five years.
Notes to editors
About Nesta
Nesta is an independent think tank focused on solving society’s biggest challenges.
Nesta conducts experiments with public and private organisations, builds and invests in early-stage ventures, and shapes policy.
Our three missions are to give every child a fair start, help people live healthy lives, and create a sustainable future where the economy works for both people and the planet.
For over 20 years, Nesta has worked to support, encourage and inspire innovation. Harnessing the rigour of science and the creativity of design, we design, test and scale solutions to change millions of lives for the better. Find out more at nesta.org.uk