Focussing on preventative health can deliver £8 for each £1 spent
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Investing in preventative health is no longer a ‘nice to have’, but an economic and social priority that can save thousands of lives and generate significant returns, according to a new report from Deloitte, Google and the Royal Society.
The report - The Shift to Prevention: Realising the Socio-Economic Potential – suggests that increasing spend on prevention from the current 6 per cent of total health care expenditure to 10 per cent could lead to £42bn in healthcare system savings.
The report reviewed 100 published papers estimating the return on investment (ROI) from prevention at different life stages. It found that the UK - across multiple groups including individuals, their families, the healthcare system, employers and wider society - stands to gain £8 ROI for every £1 spent on prevention.
Despite strong evidence of its value, prevention remains underfunded, the report argues. Most spending is directed towards treatment rather than tackling the root causes of ill health, placing unsustainable pressure on the NHS and constraining national productivity and wellbeing.
In ideas that align with the government’s 10-Year Health Plan, the report advocates a data-, AI- and technology-enabled prevention-first system designed to protect health, rather than just responding to illness.
“Our analysis shows that earlier interventions yield higher returns. Every £1 invested in early-life prevention (maternal health, oral health, diet, exercise, and vaccination) returns £13.50, while later-life interventions (frailty, loneliness, respiratory disease) yield £5.30,” the report says.
“Prevention delivers exceptional societal value – an average ROI of £8 for every £1 invested. As part of this, employers also stand to gain, with mental health initiatives returning £4.70 for every £1 spent through reduced absenteeism and higher productivity.
“As for the health system, our analysis shows that if additional spending could deliver a return of £3 for every additional £1 spent, increasing prevention spending from the current ~6 per cent to 10 per cent could yield a return of £42bn in 10 years.”
The greatest value from prevention initiatives come when health and social systems invest together, says the report. Healthcare-led interventions (screening, vaccination, lifestyle support) should be complemented by investment in the wider determinants of health - such as housing, education, transport, and employment. "Unlocking this potential requires new funding models, incentives, and partnerships that reward long-term outcomes.”
The potential of preventative healthcare remains largely untapped due to persistent underinvestment, short term appraisal horizons, a narrow focus on benefits, and a critical mismatch between those who pay and those who benefit, the report says.
It argues that a “life-course approach to prevention” is essential. By investing earlier, and tackling the biggest modifiable risk factors that contribute to preventable diseases, the UK can:
- extend healthy, productive years of life
- reduce demand on the NHS and adult social care
- enable more people to stay in work and contribute economically.
- narrow avoidable health inequalities between regions and communities.
A key barrier to increased investment is the short-term nature of current appraisal methods. Interventions are often evaluated over periods far shorter than their actual impact, according to the report.
“Only when appraisal horizons are expanded and the range of benefits assessed, will we truly capture prevention’s immense societal value. The benefits will then be far reaching for families, employers, and wider society - not just direct healthcare cost savings."