The study will aim to calculate the economic impact of racial inequities across healthcare and the NHS workforce; exploring health outcomes, access to treatment, and workforce issues, with its findings expected by May 2027.

Professor Habib Naqvi, chief executive, NHS Race and Health Observatory, said: ‘This research has the potential to change how we understand, measure and respond to the true cost of racism in the NHS. Racism is not only a profound moral and social injustice; it also carries a significant financial cost to the public purse through avoidable litigation, delayed care, poorer outcomes, workforce harm and lost productivity. But the heaviest toll is borne by individuals, families and communities — and that "human cost" cannot be captured fully in pounds and pence.

‘As the largest employer in Europe, the NHS has both a responsibility and an opportunity to lead the way in tackling racism and discrimination. Our diverse workforce is the backbone of the health service, and our patients deserve systems that are fair, equitable and free from discrimination, bias and harm. None of us can afford to be bystanders.'

NHS Health Economics Unit, the Strategy Unit, and Charity, People Street have been appointed to undertake the work to estimate costs which impact patients, individuals, communities, the NHS, public finances and wider society, typically over a 12 month period.

Researchers will study the financial consequences of racial inequity, including differences in access to and use of healthcare, delayed diagnosis and treatment, patient experience, avoidable or additional healthcare, and health outcomes. In addition, workforce issues including experiences of discrimination, sickness absence, recruitment, career progression and retention, alongside wider system consequences such as complaints, grievances and litigation will be examined.