Wellbeing is key to unlocking growth (and winning elections), The House Magazine, Monday 17th November 2025

No Budget can just be an exercise in making the figures on a spreadsheet add up.

Growing the economy and spending public money effectively are central tasks for any Chancellor, but we believe in a bigger goal for society: the wellbeing of people.

That’s why we are delighted to have revived the APPG on Wellbeing Economics with support from the World Wellbeing Movement. It will be a Parliamentary home for those of us who want to put wellbeing at the centre of the political stage. We think it is a good in and of itself; after all everyone wants as much happiness as possible for themselves, their loved ones, their community and their country.

But too many people in the UK are living with low levels of wellbeing. The UK Wellbeing Report 2025, published by the World Wellbeing Movement in July, found nearly 7 million UK people – around 13% of the population aged 16 and above – are estimated to be living below the Happiness Poverty Line. These are people who rate their satisfaction with life at 5 or below on the 0-10 scale reported by the Office for National Statistics.

Happiness in the UK continues to remain below pre-pandemic levels: average life satisfaction is lower, more people live below the Happiness Poverty Line, and fewer people are flourishing.

This is a tragedy for millions, and it is terrible for “UK plc”. If the Government is serious about economic growth, it must get serious about improving population wellbeing – here’s why.

Happy employees are more productive. A large-scale field study of almost 1,800 BT call centre workers highlighted a causal link: a one-point increase in happiness (on a scale of 0 to 10) was associated with a 12% increase in their productivity, as measured by weekly sales data.

Businesses that value wellbeing, increase their value. In the world’s largest study of work wellbeing, conducted in partnership with the University of Oxford’s Wellbeing Research Centre, Indeed’s Work Wellbeing 100 revealed that public companies with higher work wellbeing outperform the market.

Research also shows that businesses with high employee wellbeing are more successful when it comes to recruiting and retaining staff; saving costs and time, whilst ensuring they have the talent they need to succeed.

Informed by a strong evidence base and clear values, more and more businesses are viewing wellbeing as an essential component of their growth strategy – it is time for the Government to do the same.

First, the Government should show its commitment by ensuring wellbeing statistics are at least as prominent as GDP figures. After all, the Prime Minister has previously said “we can only begin to improve the nation’s wellbeing if we treat wellbeing equally to economic growth. That means ensuring national wellbeing and economic growth are prioritised equally.”

The Budget is a critical event when the Government assesses the state of the economy, reports on it and sets out what this means for levels of taxation and spending. We need an equivalent moment (or moments) in the Parliamentary calendar to focus on wellbeing, to shine a spotlight on where we are and what action can be taken to grow it – and spread it equally.

Second, a modern industrial strategy should consider the wellbeing of the workforce. This means the Government must work proactively with businesses to increase the measuring of wellbeing across the economy and collaborate with academics and others to address the drivers of workplace wellbeing.

Third, the Government should spend money on policies that make our lives better. The Treasury Green Book guidance on wellbeing demonstrates how policymakers can draw on wellbeing evidence and consider what the impact of various policy options might be on wellbeing. Professor Lord Richard Layard’s Value for Money report shows investment on mental health and apprenticeships would be a highly efficient use of resources when public money is in short supply.

And if that is not enough, research also shows the wellbeing of people is a better indicator than economic performance of whether a Government gets re-elected. With elections to local councils, the Welsh Assembly and the Scottish Parliament all taking place next May, politicians of all parties should reflect on the priority that voters themselves give to wellbeing when casting their vote.

In turbulent political times, listening to how people feel – and acting on the causes – offers a positive path to renewing the UK by growing both the economy and wellbeing. Wellbeing should be at the heart of the budget.

Peter Lamb MP, Chair of the APPG on Wellbeing Economics

Lord Gus O’Donnell, Co-Chair of the APPG on Wellbeing Economics