UK heatwaves may have cost economy £4.4bn in lost output so far this year, analysis finds
The UK economy may have lost £4.4bn in output due to heatwaves so far this year, according to an analysis by the Verdant thinktank. The economic costs of climate change are already being felt, and are set to worsen in future years if action is not taken to protect workers and businesses. The thinktank is calling for the government to implement a maximum working temperature and invest in urban redesign to create cooler green spaces in towns and cities.
- ▪The UK economy may have lost £4.4bn in output due to heatwaves so far this year.
- ▪The economic cost of heatwaves could rise to more than £25bn a year by 2030 if they continue to intensify at the same rate as in the last decade.
- ▪Workers' output declines by 3% for every degree above 30C that temperatures rise, according to cross-European estimates by the insurer Allianz.
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| Original publisher | The Guardian — World |
| Canonical URL | https://www.theguardian.com/business/2026/aug/12/heatwaves-uk-cost-economy-lost-output-thinktank |
| Publication time | Wed, 12 Aug 2026 04:00:20 GMT |
| Retrieval time | 2026-08-12T04:05:42.456Z |
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Verdant said the government should also compensate workers forced to cut hours due to extreme heat. Photograph: demaerre/Getty ImagesView image in fullscreenVerdant said the government should also compensate workers forced to cut hours due to extreme heat. Photograph: demaerre/Getty ImagesEconomicsUK heatwaves may have cost economy £4.4bn in lost output so far this year, analysis findsVerdant thinktank says cost could top £25bn a year by 2030 and calls for maximum temperature for working and urban redesign to cool down citiesHeather Stewart Economics editor Wed 12 Aug 2026 00.00 EDTSharePrefer the Guardian on GoogleRepeated debilitating heatwaves this summer are likely to have cost the UK economy more than £4bn in lost economic output by the end of July, new analysis shows.Green thinktank…
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