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Essendon Accounts & Tax

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How the recent heatwaves have cost businesses billions

Roger Eddowes

CREATED BY ROGER EDDOWES

Published: 03/08/2026 @ 09:00AM

#Juneheatwave #recordbreaking #LondonSchoolofEconomics #lostworkinghours #UKeconomy

The record-breaking June heatwave was more than just a talking point. According to new research from the London School of Economics (LSE), the exceptionally high temperatures led to an estimated 24 million lost working hours, costing the UK economy around £1.15 billion ...

Recent heatwaves have caused businesses to lose billions, so ensure your team can stay productive

Recent heatwaves have caused businesses to lose billions, so ensure your team can stay productive

The research found that employees working in physically demanding outdoor roles, such as construction and agriculture, were the hardest hit. Higher temperatures made it more difficult to work safely and comfortably, leading to reduced working hours and, in some cases, employees being unable to work at all.

In contrast, workers in office-based roles experienced a smaller
impact, though they were not immune to the heat!

Perhaps most concerning was that around 3.6% of surveyed workers reported not working at all during a particularly hot week in June due to extreme temperatures. Across the wider workforce, that equates to approximately 1.25 million people.

The study also found that almost nine in ten respondents experienced at least one health-related issue, including poor sleep, fatigue, dizziness or a racing heartbeat. Even for employees who remained at work, reduced concentration and lower productivity can significantly affect business performance.

For employers across the country, this is a timely reminder that climate-related disruption is no longer a future concern.

Heatwaves are becoming more frequent, and businesses should consider whether they are prepared. Simple measures such as relaxing dress code, allowing working from home, encouraging regular breaks, providing access to drinking water, and reviewing health and safety policies can help reduce the impact on staff wellbeing and productivity. These are all things I've done at Essendon to make my team's life a little easier during the increased temperatures.

There are obvious financial considerations too!

Reduced output, delayed projects, staff absence and lower efficiency all affect the bottom line. Businesses operating in sectors with outdoor workers or non-air-conditioned premises may be particularly vulnerable and should consider how extreme weather fits into their wider business continuity planning.

As an accountant, I usually focus on the numbers, but those numbers are ultimately driven by people. Supporting employees during periods of extreme weather is not only the right thing to do, but it also makes good commercial sense.

With scientists warning that hotter summers are likely to become more common, planning ahead now could help businesses remain productive.

Protecting your workforce when the next heatwave arrives is only sensible.

Until next time ...


ROGER EDDOWES
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If anything I've written in my blog post resonates with you and you'd like to discover more of my thoughts about how your team can stay productive during heatwaves, then do call me on 01908 774320 and let's see how I can help you.

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#Juneheatwave #recordbreaking #LondonSchoolofEconomics #lostworkinghours #UKeconomy

About Roger Eddowes ...

Roger Eddowes 

Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.

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