Investing in Play: Why Every Pound Spent on Childhood Play Pays Economic Dividends

As the UK grapples with sluggish productivity, rising healthcare costs, and widening inequalities, we should ask a fundamental question: are we giving our children – the very people who will drive tomorrow’s economy – the right start in life?

One of the simplest, yet most overlooked levers we have to improve our future prosperity is play.

Yes, play.

Not just swings and slides, but the freedom for children to explore, imagine, socialise, and develop the critical skills that underpin learning, health, and resilience. In a modern economy, where creativity, collaboration, and adaptability are at a premium, play is not a nice-to-have. It is an economic imperative.

Yet, over the past 15 years, we have allowed play to be quietly eroded from children’s lives. Public playgrounds have closed. School break times have shortened. Streets are dominated by cars, not children. And digital entertainment is fast replacing the real-world experiences that spark problem-solving, communication, and emotional intelligence.

The result? A generation growing up with rising rates of obesity, declining mental health, and a lack of basic life skills – all of which come at a cost to the public purse and our wider economy.

Play Builds Skills for the 21st Century Economy

The World Economic Forum lists complex problem-solving, creativity, resilience, and collaboration among the most important skills for the future workforce. These are not skills taught by rote learning. They are developed through play.

Play helps children develop executive function—the brain’s control panel for attention, memory, and self-regulation. It fosters the kind of flexible thinking and social adaptability that employers increasingly demand.

Research by the LEGO Foundation shows that play-based learning not only enhances cognitive development but also boosts long-term academic achievement and workplace readiness. In short, children who play well, learn well—and earn well.

The Cost of Play Deprivation

But what happens when we deprive children of play? The economic consequences are stark.

According to Public Health England, sedentary lifestyles driven by screen-time and reduced physical play are fuelling an epidemic of childhood obesity, with 40% of children in London now living with an unhealthy weight. The long-term health costs of obesity, including diabetes, heart disease, and associated mental health conditions, are projected to reach £9.7 billion annually by 2050.

At the same time, one in five children in England now has a probable mental health condition, up from one in nine in 2017. Early interventions through play—especially outdoor and social play—can mitigate these risks, reducing later reliance on overstretched NHS services.

Moreover, play supports school readiness, attendance, and engagement. A child who learns through play in their early years is more likely to start school ready to learn, less likely to struggle academically, and more likely to complete their education. In contrast, poor school readiness costs the economy in lost productivity and increased public service demand. Estimates suggest that every cohort of children leaving school without basic qualifications costs the UK economy £22 billion over their lifetime.

A National Play Strategy Makes Economic Sense

The Raising the Nation Play Commission, which I chair, has called for a National Play Strategy for England. Other parts of the UK are already recognising the value of play—Wales and Scotland have both legislated for children’s right to play and are reaping the benefits in health and education outcomes.

A coherent, cross-departmental strategy would:

• Increase access to safe, local places to play.

• Embed play-based learning in schools.

• Provide support for parents to encourage play at home.

• Reform planning rules to design child-friendly communities.

Investing in play is not about nostalgia. It is about future-proofing our economy.

A 2018 report by the Real Play Coalition estimated that a 10% increase in time spent on creative play would lead to an 8% uplift in GDP over the long term, through better educational outcomes and workforce productivity. Similarly, preventative public health approaches that promote play can save £14 for every £1 spent, by reducing future health and social care costs.

The Moral and Economic Imperative

We must stop viewing play as frivolous and start recognising it as fundamental to human and economic development. A child who plays is a child who learns, grows, and contributes. A society that invests in play invests in a more productive, healthier, and happier future.

As policymakers focus on growth, innovation, and levelling up, they would do well to remember that childhood is where it all begins.

A national commitment to play is not just the right thing to do – it’s the smart thing to do. 

Image credit: @drewfussphotogrpahy and Hornimans Adventure Playground, London W10. Image used as cover image in ‘Everything to Play For, the final report from the Raising the Nation Play Commission, June 2025