Physical inactivity is quietly placing a heavy burden on the UK, with Sport England estimating a potential annual cost of £20 billion to the public purse. As the government prepares for its next Budget, the case for supporting sport and physical activity has never been clearer. This figure represents not just direct healthcare savings, but also the broader economic and societal benefits that could be unlocked if more people, especially those currently least active, were supported to move more.
Sport England’s latest research underscores the significant value of grassroots sport and exercise to the UK economy. Every year, physical activity contributes an estimated £36 billion in gross value added, with £14 billion generated in tax revenue. Perhaps most strikingly, every £1 invested in the sector is calculated to deliver a return of £4.38, thanks to a combination of savings to the NHS, chronic illness prevention, improved workforce productivity, and enhanced wellbeing. These numbers are not merely abstract: they reflect the real-world impact of community sports clubs, leisure centres, and informal exercise on both the economy and people’s lives.
But what does the headline figure of £20 billion actually mean? It is important to clarify that this is not a direct, currently incurred cost, but rather an estimate of the potential annual benefit that could be achieved if inactivity, particularly among the least active groups, were significantly reduced. The calculation is based on a social return on investment model, which brings together potential NHS savings from lower rates of chronic disease, productivity gains from a healthier workforce, and improvements in quality of life and wellbeing. The direct costs to the NHS from physical inactivity are currently estimated at over £1 billion a year, but when lost productivity, social care needs, and reduced wellbeing are included, the potential benefits of addressing inactivity rise dramatically.
The impact of inactivity is not spread evenly across society. Sport England’s research highlights substantial inequalities: disabled people, those with multiple impairments, lower-income groups, and some ethnic minorities are far more likely to be inactive. For example, nearly half of people with three or more impairments are inactive, facing compounded barriers such as cost, accessibility, and social attitudes. Lower-income communities and certain ethnic minority groups also encounter obstacles including lack of facilities, cultural attitudes, and financial constraints. Addressing these inequalities is not only a moral imperative but also an economic one, as the greatest potential gains lie in supporting those who are currently least likely to be active.
The broader consequences of inactivity stretch well beyond the NHS. Productivity losses from increased sick days and lower workforce participation cost billions each year. There are knock-on impacts on social care demand and informal caregiving, while inactivity is estimated to contribute to over 35,000 premature deaths annually in the UK. Internationally, the UK’s challenge is mirrored in other developed nations, where inactivity typically accounts for 1.5 to 3 per cent of healthcare spending.
Recognising these challenges, the UK government has pledged £400 million over the next four years for new and upgraded grassroots sports facilities. However, sector leaders – including Sport England – are calling for sustained investment and a targeted approach to ensure those who face the greatest barriers to activity are prioritised. The evidence is clear: by helping the least active to move more, the UK can unlock huge financial savings, boost productivity, and improve the wellbeing of millions.
Ultimately, physical inactivity is a hidden drain on the nation’s health, economy, and social fabric. Yet the solution is within reach. Investment in sport and physical activity offers an unmatched return – not just in pounds and pence, but in healthier, happier lives and stronger communities. With a potential £20 billion benefit at stake, getting Britain moving should be a national priority.
Links:
Roan, D., 2025. Inactivity costing £20bn a year, says Sport England. BBC Sport. Available at: https://www.bbc.co.uk/sport/articles/cvgv2plkvz0o [Accessed 18 November 2025].
Sport England, 2025. Health, wealth and happiness – the £123bn value of activity. Sport England. Available at: https://www.sportengland.org/news-and-inspiration/health-wealth-and-happiness-ps123bn-value-activity [Accessed 18 November 2025].
