The economic impact of four extreme heatwaves in England amounted to at least £4.4 billion in lost output. The heatwaves recorded from late May to late July 2026 caused these losses through declining worker productivity and infrastructure disruptions.
Research by the Verdant think tank estimated that the heatwave in May caused losses of approximately £500 million. Losses during the periods when temperatures reached their highest levels in June and July were calculated at £2.36 billion and £1.5 billion, respectively.
Productivity declines as temperatures rise
Analysts calculated that when temperatures in Europe rise above 30 degrees Celsius, each additional 1-degree increase reduces average hourly worker productivity by 3 percent.
The research projected that if the current pace of the extreme-heat trend continues, England’s annual cumulative productivity losses could reach £25.6 billion by 2030.
Proposals to limit the economic impact
Verdant recommended setting a maximum working temperature nationwide to reduce future losses.
The report also called for the creation of an insurance program against hot-weather conditions and greater investment in cooling infrastructure in cities.