Users need discretionary income of nearly \u00a3100,000 a year to make savings on their grocery spend after paying \u00a31,200 for GLP-1s, analysis finds<\/p>\n
The high cost of weight-loss medication is a \u201cregressive tax on being thin\u201d because the outlay outweighs any saving on food costs for all but the highest earners.<\/p>\n
Someone needs to have discretionary income of nearly \u00a3100,000 a year to actually save money after covering the \u00a31,200 annual cost of GLP-1 medication, according to an analysis by the consultancy Baringa.<\/p>\n
\u201cOur analysis shows that GLP-1s risk becoming a driver of inequality,\u201d said Paddy Winters, a partner at Baringa. \u201cOnly very high earners will benefit from savings to their groceries whilst taking the GLP-1 pill.\u201d<\/p>\n
A regressive tax is one that takes a larger percentage from lower-wage earners\u2019 income compared with those who are more wealthy. Most users buy the drugs with a private prescription.<\/p>\n
A GLP-1 user with \u00a339,000 left over after tax and essentials will spend \u00a3481 less a year on food. But it is not until someone has \u00a397,500 left to spend after tax and other outgoings that their grocery spend is reduced by \u00a31,200, according to Baringa. The cost is an average for the pill form of the medication.<\/p>\n
For \u201ceveryone else\u201d the annual cost of the drug outweighs any reduction in spending on groceries, Winters said. \u201cOn top of that, users are spending more on vitamin supplements and personal care products like hair care, to manage side effects. In effect, GLP-1s become a regressive tax on being thin.\u201d<\/p>\n
\u201cWe\u2019re already seeing early signs that some people cancel their prescription after a few months because the cost adds up \u2013 but the weight comes back once you stop,\u201d he added. \u201cSo the pattern is likely to be start, stop, regain and return, and to fund that cycle, we may well see people turn to debt.\u201d<\/p>\n
There are 14.3 million adults living with obesity in England, according to the King\u2019s Fund. In a recent report, the charity said the government \u201cneeds to ensure that the people who benefit from [weight-loss medication] most are not priced out of accessing them, and that we don\u2019t end up with wider health inequalities caused by obesity due to affordability and access\u201d.<\/p>\n
It is estimated that 5% of adults, or nearly 3 million people, in Britain are on weight-loss medication, while 9% have taken it at some point, according to separate research by accountancy firm PwC. It expects this number to rise to 13% by the end of next year.<\/p>\n
About 60% of GLP-1 users are women, according to PwC. Among current users 6% come from households with income of less than \u00a320,000, whereas 20% are from the wealthiest, earning above \u00a3100,000.<\/p>\n
Dr Leyla Hannbeck, the executive chair of the Independent Pharmacies Association, said that access to GLP-1s on the NHS is \u201climited only to a small eligible cohort and many people who might benefit are unable to access treatment at all unless they can afford private care\u201d.<\/p>\n
Get set for the working day \u2013 we'll point you to all the business news and analysis you need every morning<\/p>\n
\u201cThe NHS commissioning currently protects against some of the financial inequity, but access is limited,\u201d Hannbeck said.<\/p>\n
The price of weight-loss drugs varies significantly depending on the retailer, drug, dose and whether any discounts or subscription is being used.<\/p>\n