Poor health in the North costing the UK billions in lost productivity

A report released on Thursday (November 20, 2025) by Health Equity North (HEN) reveals that the relationship between health and productivity has become stronger over the last seven years, placing a huge financial burden on the economy and stagnating possible productivity growth.

The scale of the health-related economic inactivity crisis is greater in the North of England, with workers more likely to lose their job due to ill health, and those without educational qualifications facing a ninefold higher risk of losing their job if they become ill.

‘Health for Wealth 2025: Building a Healthier North to boost UK Productivity’ revisits the issues exposed in the landmark 2018 Health for Wealth report and explores how the landscape has changed over the last seven years.

You can read the full report here

Key findings in the report, authored by HEN academics from Newcastle University, The University of Manchester, Lancaster University and Teesside University, shows that:

• If the health of the North was matched to the rest of the country, it could generate an additional £18.4bn a year – a 13% increase in economic gains found in the previous Health for Wealth report published in 2018 when accounting for inflation.
• People living in the North are two times more likely to lose their job following a spell of ill-health than those in the rest of England.
• In the North, workers with no educational qualifications are nine times less likely to remain employed following a spell of ill health compared with those with at least an A-level qualification, whereas in the rest of England, there is no statistically significant relationship between worsening health and remaining employed by educational attainment.
• £6.6bn could be added to the economy if mental health was improved in the North East.
• Workers in the North who experience ill-health suffer monthly pay losses that are nearly triple the national average – equal to 6.6% vs. 2.3% national average.
• Since 2018, all three northern regions have experienced, on average, more than double rises in economic inactivity due to ill health compared with London – rising by 22% vs. 10% respectively.
• Amongst people with long-term health conditions, the gap in economic inactivity between the North and rest of England has nearly quadrupled since the start of the COVID pandemic – increasing from a 1.1 percentage point difference to 4.2 percentage points (47% to 51.2%).
• The regional economic divide between the North and the South has increased since 2018, with gaps in total economic inactivity growing by 8% and in wages by 5%.
• The relative gap in productivity (as measured by GVA per head) has decreased by 2%, owing to the relatively greater increases in the North, particularly since the pandemic. However, the gap remains large, with 26% lower productivity in the North than in the rest of England in 2023. In particular, Greater Manchester and some parts of Yorkshire experienced the highest increases in productivity growth over the past two decades, with accelerated improvements since the pandemic. However, other parts of the North – including the majority of the North East – are continuing to be left-behind.
• The new report suggests that unless decisive action is taken, the North-South health and productivity divide will continue to widen, limiting the UK’s ability to deliver inclusive, sustainable growth.