To better understand the economic impacts of obesity and excess weight, Nesta commissioned Frontier Economics to quantify the economic cost of these conditions and the potential economic gains from addressing them.
UK obesity rates have doubled over the past 30 years. Today, nearly one in three adults lives with obesity. This not only has profound implications for individuals and the NHS, but also for our economy.
Our analysis shows that obesity and excess weight costs the UK economy around £31 billion a year in lower productivity. That’s equivalent to 3p off the rate of income tax for everyone in the country. Because we have used a more comprehensive approach (including additional types of productivity loss compared to previous reports) and more recent data sources, this is more than double previous estimates. However, we have also updated the methodology to better reflect the causal relationship between obesity and employment rates, meaning these estimates are more likely to reflect real-world impacts
What’s in the report
The report estimates that the productivity cost of obesity and excess weight to the UK economy is around £31 billion. This is made up of:
- more people being unemployed (£12.1 billion)
- people being less productive while at work (£9.7 billion)
- people taking more sick days (£8.3 billion)
- lost working years due to people dying earlier than expected (£0.7 billion).
The report also estimates that obesity and excess weight cost the NHS around £12 billion per year, with the total impact of these conditions on the economy and wider society in the UK equivalent to £126 billion
Findings/recommendations
- The vast majority of productivity costs stem from obesity rather than overweight – £24 billion compared with £6.9 billion.
- Rates of obesity are higher in poorer areas, but salaries are, on average, lower. Overall, the economic costs are concentrated more in poorer areas. The cost of obesity is £440,000 per 1,000 people in the most deprived 20% of neighbourhoods compared with £360,000 per 1,000 people in the least deprived 20% of places. Tackling obesity would therefore raise economic growth and reduce not only health inequalities but also economic inequality.
- Obesity-related costs are likely to continue to rise over the next decade. By 2035, this report estimates that the annual costs of excess weight will reach £150 billion (in 2025 prices), with productivity losses of £36 billion – an 18% increase over the next 10 years in real terms.
- Nesta’s evidence shows that policies which can prevent diet-related ill health by improving our food environment are the most effective at cutting obesity. We welcome the UK government’s plan to introduce a healthy food standard for food businesses, including supermarkets, based on Nesta’s policy proposal for health targets for supermarkets.
- Action on obesity isn’t just imperative for the nation’s health: it can also unlock billions in economic output, raise living standards and support the Government’s ambition to generate economic growth.
