Costs of loneliness

We know that loneliness has an impact on our health. It can directly harm our physical and our mental health and can also make us more likely to engage in the kind of behaviours that are bad for us. People who are lonely are more likely to exercise less, eat less healthily and are more disposed to smoke and drink heavily. Health and social care providers pay a cost for supporting people who are lonely and as a result are less healthy.

We also know that loneliness has an impact on our workplaces and our economy. Employers are unable to recruit and retain the best talent as lonely employees feel excluded or isolated and leave jobs, sometimes the workforce completely.

Overview

In 2017 we commissioned researchers from the London School of Economics (LSE) to carry out research review about the cost-effectiveness of loneliness interventions. We wanted to:

better understand what is known about the cost effectiveness of interventions to prevent and/or tackle loneliness experienced by older people
understand what types of methods and approaches have been used to cost and/ value impacts of interventions on loneliness.

Led by Professor David McDaid from the LSE, this review covered the last ten years; interventions needed to focus on individuals aged 55 and over, regardless of health or disability status; or on volunteers or family members supporting this population group. 20,108 records were initially identified and after filtering more than 50 papers were included in the review.

The report highlighted a number of steps to strengthen the evidence base on the cost effectiveness of actions to address loneliness, some of which could be implemented straight away and others which were dependent on capacity development for future evaluation:

Embed economic analysis in evaluation.
Encourage economic analysis to consider the impact of changes in loneliness not only on health but on other sectors, as well as for society.
Report return on investment to the public purse in addition to costs per improvement in loneliness achieved.
Be conservative in assumptions made using the SROI methodology.
Increase the focus on evaluating the benefits of measures to increase social participation.
Make use of modelling approaches to increase evidence base.
Better understand how loneliness instruments and quality of life instruments can be linked

Cost of loneliness to employers

In 2017, New Economics Foundation produced a report on the Cost of Loneliness to UK Employers. This report, launched jointly by the Co-op and New Economics Foundation and issued in conjunction with the Jo Cox National Commission on Loneliness, put the cost of loneliness to employers at £2.5 billion a year.