Repeated heatwaves are likely to have cost the UK economy more than £4bn in lost output by the end of July, according to new analysis by the thinktank Verdant, which warns the annual cost could exceed £25bn by 2030.
Verdant had estimated the economic cost of June’s hot weather at £2.36bn. Updating its assessment to include last month’s high temperatures, it now puts the hit to output at £4.4bn.
The thinktank says the direct costs arise because workers across many industries become less productive in heatwaves, while infrastructure and equipment overheats and has to be shut down. The largest effect is likely to have been felt in London and the south-east, where temperatures have been highest, it argues.
James Meadway, Verdant’s director, said: “The economic costs of climate change are already with us, and set to worsen in future years. Action by the government to protect workers and businesses from the severe effects of extreme heat is well overdue.”
The analysis comes as the Met Office issued an amber warning for extreme heat in England this week, following three previous heatwaves in May, June and July. The forecaster has said the UK is on course to record its hottest summer ever, with repeated heatwaves already weighing on trade and output this summer.
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