A report from the Co-op and think tank Demos has revealed that the UK economy is missing out on £19bn in GDP growth annually due to a systemic failure to promote greater social mobility in the workplace. 

The report – The Opportunity Effect – highlights that improved social mobility could generate £6.8bn in yearly tax revenues from additional economic activity. This is equivalent to funding more than 170,000 teachers or 884,000 school places. 

A Co-op survey of 2,000 UK adults found that 29% are more likely to purchase from a business promoting social mobility. This figure rises to more than 40% among young consumers aged 18-34.

A survey of business leaders found that three in four (76%) feel that promoting social mobility would help attract and retain staff while 71% believe it would help achieve business results.

The report suggests that if employers were to adopt key strategies supporting greater social mobility, this could lead to a £1.8bn rise in private-sector business profits. 

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The report outlines several recommendations for the Government and businesses to promote social mobility, including giving Skills England a statutory responsibility for increasing social mobility, creating a government-backed Better Opportunities Fund to co-invest in social mobility projects with the private sector, and encouraging businesses to ask job applicants to voluntarily share socio-economic information. 

“This report marks an important moment in the UK’s productivity debate and puts social mobility at the heart of that discussion,” said Co-op CEO Shirine Khoury-Haq. “It shows that breaking down barriers to opportunity can be a much-needed boost for the UK’s economy and for business performance.” 

As part of its wider campaign to promote social mobility, Co-op is now calling on businesses to share feedback on what support they need to champion social mobility in the workplace. The company plans to develop business toolkits offering practical steps businesses can take, informed by the feedback received.