Closing the health gap between the North and the rest of England could put an extra £18.4 billion into the economy per year according to new research.

The report by Health Equity North (HEN) is authored by academics from Lancaster University, Newcastle University, the University of Manchester, and Teesside University.

Lancaster Professor of Health Inequalities Heather Brown said: “This report shows that inequalities in health and wealth between the North and rest of England have accelerated after the Covid pandemic. We need to support economic and health investments that narrows this gap to create opportunities for all to thrive.”

‘Health for Wealth 2025: Building a Healthier North will boost UK Productivity’ shows that regional inequalities in health and productivity have deepened.

In 2018, the Northern Health Science Alliance’s Health for Wealth report highlighted the link between the North’s poor health and poor productivity for the first time and revealed that tackling health inequalities between the North and the South could generate an additional £13.2bn per year. Today’s analysis show that this figure has risen to £18.4bn per year.

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.

The report shows that:

· If the health of the North were matched to the rest of the country, it could generate an additional £18.4bn a year

· People living in the North are twice as likely to lose their job following a spell of ill-health compared with those in the rest of England

· £6.6bn could be added to the economy if mental health was improved in the Northeast

· Workers in the North who experience ill-health suffer monthly pay losses that are nearly triple the 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

· The gap in economic inactivity due to ill health between the North and rest of England has nearly quadrupled since the start of the COVID pandemic - from 1.1 percentage point difference to 4.2 percentage point difference

· The regional economic divide between the North and the South has increased since 2018, with total economic inactivity growing by 8% and wages by 5%.

The report urges government and business leaders to make health a central component of the UK’s productivity and growth strategy.

Hannah Davies, Executive Director at Health Equity North, said: “Our new analysis makes it clear that health investment is not just a social or moral priority, but an economic necessity. Poor physical and mental health are holding back the potential of millions of people and, in turn, the productivity of the entire UK. If we want a stronger economy, we must start by building a healthier nation. Prioritising mental health, prevention, and place-based support in the North will deliver lasting returns in prosperity and wellbeing.”

Health Equity North is a virtual institute focused on place-based solutions to public health problems and health inequalities across the North of England. It brings together world-leading academic expertise from the Northern Health Science Alliance’s members of leading universities and hospitals.

The report, Health for Wealth 2025: Building a Healthier North to boost UK Productivity, is available to view at https://www.healthequitynorth.co.uk/app/uploads/HEALTH-FOR-WEALTH-2025-EMBARGOED-FINAL-VERSION.pdf