Restoring UK Health to 2014 Levels Could Boost GDP by 2%, Says Health Foundation
A report from the Health Foundation suggests that improving the UK's health to 2014 standards could generate £72bn for public finances and increase GDP by 2%.
By The Guardian
Restoring the health of the UK population to levels seen in 2014 could potentially increase GDP by 2% and generate a £72bn boost for public finances, according to a report published by the Health Foundation thinktank on Sunday, July 19, 2026. The research argues that health should be regarded as an economic asset rather than merely a social cost.
The Health Foundation indicates that enhancing health outcomes would directly contribute £72bn to public finances, while the overall economic impact could raise GDP by 2%. The report highlights that the decline in the UK's population health represents a significant economic loss that could be mitigated by returning to 2014 health standards.
The report notes that healthy life expectancy in the UK fell by two years from 2012 to 2024, making the UK one of only five of the world's 21 wealthiest countries to experience such a decline. During the same period, the number of working-age individuals with long-term health conditions rose from 11.7 million to 15.7 million.
The Health Foundation also points out stark health inequalities, with residents in the wealthiest 10% of areas likely to enjoy up to 20 more years of good health compared to those in the poorest 10%.
Increasing ill health contributes to rising NHS expenditures and disability benefit costs. However, the report emphasizes that these costs also encompass lost tax revenue and economic output due to sickness preventing individuals from working.
The modelling suggests that reducing ill health to 2014 levels could increase economic output by £57bn, equating to 2% of GDP. David Finch, the interim director of health and inequalities at the Health Foundation, stated, "Restoring the nation's working-age health to 2014 levels could unlock £57bn in economic output and provide a £72bn boost to the public finances through stronger tax revenues and reduced spending on social security and the NHS."
The report advocates for a shift in policymakers' focus towards prevention and public health measures, alongside treatment. It acknowledges that while improving health will not resolve every economic challenge, it can significantly enhance economic performance and living standards.
The issue of health and its impact on the labour force will be a priority for the incoming prime minister, Andy Burnham, who is expected to receive two reports in the autumn addressing young people not in education, employment, or training, many due to health issues, and potential reforms to disability benefits.
The Health Foundation's findings align with a recent warning from the Resolution Foundation thinktank, which noted that poor health has significantly affected the UK's public finances, similar to demographic changes. Health-related spending now constitutes £1 in every £4 of government expenditure, excluding debt interest costs.