UK heatwaves cost economy £4.4bn in lost output by July

Recent estimates show that repeated heatwaves in the UK this summer cost the economy around £4.4 billion in lost output by the end of July, as worker productivity fell and some equipment and infrastructure were disrupted by high temperatures.

According to analysis from environmental research center Verdant, losses rose from about £2.36 billion estimated for June's heatwave alone, as high temperatures persisted through July.

James Meadway, director of Verdant, said, "The economic cost of climate change is already tangible and is expected to worsen in the coming years," urging the government to take action to protect workers and businesses from extreme heat.

The estimate comes as the UK Met Office issued an amber warning for extreme heat in England this week, following three heatwaves in May, June, and July, with forecasts suggesting summer 2026 could see the highest average temperatures ever recorded in Britain.

Verdant's analysis indicates that direct losses mainly result from reduced worker productivity across various sectors, as well as overheating of equipment and infrastructure, forcing some facilities to scale back or temporarily halt operations.

The £4.4 billion estimate does not include indirect losses, such as the cost of fighting wildfires and increased electricity use for fans and air conditioning. The center expects London and southeast England to be hardest hit, as they recorded the highest temperatures.

The center warned that if heatwaves continue to rise at the pace seen over the past decade, their annual cost to the UK economy could exceed £25 billion by 2030.