With temperatures breaking 30 degrees on multiple occasions in 2026, scorching heat is becoming the new normal.
Consecutive heatwaves have wiped £4.4 billion from the UK economy, according to research from think tank Verdant.
Heatwaves are predicted to become more common and more intense, likely costing UK employers further billions of pounds unless they are able to prepare.
Where do the losses come from?
After experiencing the fifth heatwave of the year, the Met Office reported that summer 2026 is on course to be the hottest on record.
Every one degree over 30 has been linked to a three per cent fall in average output per hour, according to analyst calculations.
The projected cumulative losses in productivity are expected to reach £25.6 billion by 2030 if trends in extreme heat continue.
While the losses primarily come from reduced worker productivity, extreme heat can cause infrastructure and equipment malfunctions.
Elsewhere, supply chains can be impacted through damage to roads and vehicles overheating.
How could SMEs prepare?
While there is no statutory maximum workplace temperature, there have been calls for the Government to compensate employees who are unable to work in the heat.
The pre-existing legislation, outlined in the Health and Safety at Work Act 1974, stipulates that workplace temperatures should not harm employee health.
However, as heatwaves become more regular, there is a chance a maximum workplace temperature will be introduced.
SMEs could begin to implement climate control in the workplace to prepare for future heatwaves, ensuring workers are comfortable during extreme heat.
Creating heat plans for your company can help identify hazards early, with pre-prepared policies to be rolled out when the weather is hot.
This might include a relaxed dress code, hydration breaks, flexible working hours and homeworking triggers that are agreed in advance.
Where productivity is expected to dip, financial modelling can allow you to see what a few weeks of reduced output might mean for your company – the same approach taken to seasonal dips.
Speaking to a specialist
Accountants can build heat disruption into cash flow models to enable you to mitigate the impact of lower productivity on your revenue.
A specialist can check whether businesses might be eligible for capital allowances to invest in cooling and ventilation equipment, providing added funding or tax reliefs.
Contact our team for advice on how to protect your business from the next heatwave.
