Cutting VAT from sunscreen could save the NHS over £128 million per year in cancer treatment costs

The move, called for by the skin cancer charity Melanoma Focus, could also save over 300 UK lives per year.

Research published today, commissioned by the charity Melanoma Focus, has found that cutting VAT from SPF 30+ sunscreen could reduce skin cancer incidence and save the NHS over £128 million annually in treatment costs. These savings for the public sector would, from one year, outweigh the annual revenue lost from VAT on sunscreen which currently stands at £67 million. [1]

The research, carried out by Alma Economics, estimates that in addition to the financial benefits, removing sunscreen VAT could prevent 2,500 – 3,200 cases of melanoma skin cancer annually over the next decade and save over 300 lives per year. [2,3]

Melanoma Focus, alongside other skin cancer charities, is calling on the government to cut VAT from SPF 30+ sunscreen products to make them more affordable, encourage usage and, ultimately, reduce skin cancer cases.

Melanoma skin cancer is becoming more common in the UK and researchers have projected a record high of 20,800 cases this year. [4] This is expected to rise to 27,000 by 2040. [5] Treatments, particularly if caught early, can be very effective, but the average cost for a patient diagnosed with an early stage melanoma is approximately £9,000 and significantly exceeds £200,000 for patients diagnosed with a melanoma that has spread to other organs in the body. [6]

Because of the rising skin cancer prevalence, today’s economic research has further projected that by 2033, the NHS treatment cost savings resulting from the zero-rate VAT on sunscreen will nearly double the loss in tax revenue (£193 million vs. £79 million with a “Return on Investment” of £2.40). [7]

An additional UK-wide survey carried out by Melanoma Focus this year found that nearly half (45%) of UK adults think sunscreen is too expensive and most (60%) would use it more if it was cheaper. The survey also found that 10-15% of people don’t use it at all because of the cost and 82% think VAT should be removed from sunscreen. [8,9] 86% of melanoma skin cancer cases can be prevented by sun protection measures including using high factor sunscreen. 

Susanna Daniels, CEO of Melanoma Focus, said:

“Removing VAT from sunscreen is imperative, backed by compelling evidence that it will not only protect lives but also create substantial cost savings for the NHS.

“Melanoma can be deadly and it’s on the rise in the UK. We’ve reached the point that more people are dying from melanoma here than in Australia.

“Sunscreen is a key tool in preventing skin cancer as well as covering up, staying out of the sun during the heat of the day and avoiding the use of sunbeds. But, with continued pressures on household budgets, many people are struggling to afford this essential product.”

Professor Adele Green, Honorary Professor at the University of Manchester and Emeritus Fellow at the QIMR Berghofer Institute of Medical Research in Brisbane, Australia, said: 

“Unlike many cancers, we know how to prevent melanoma and the other more common skin cancers. It’s by simple sun protection measures, like wearing a hat and applying sunscreen. 

“This report from Melanoma Focus shows that zero VAT on sunscreen in the UK would quickly result in a Win-Win situation: fewer patients with serious melanoma, and major savings for the NHS. Better still, the health and financial benefits would increase over time after VAT is removed.”

Professor Catherine Harwood, Consultant Dermatologist and Melanoma Focus Trustee said:

“Melanoma is a highly preventable cancer but we’re seeing rates continue to rise alarmingly in the UK. 

“It’s clear from this research that removal of VAT from sunscreen has the potential to result in significant benefits for public health through skin cancer prevention and this would help alleviate pressures on the NHS.”

 

1.For the year 2025, this report estimates that a zero-rate VAT could save the NHS £128 million, with a corresponding VAT revenue loss of £67 million. That is, for each £1 forgone in VAT revenue, the public sector would save £1.9 in NHS treatment costs. It is assumed that the first year of VAT abolition is 2024, with the benefits materialising from 2025 onwards. In other words, there is a one-year lag between the abolition of VAT and the reduced risk of skin cancer from increased sunscreen usage. See figure 2 page 4.

2. In 2025, the research estimates that approximately 2,500 cases of melanoma cancer could be prevented due to the increased use of SPF 30+ sunscreen resulting from the VAT abolishment. This rises to approximately 3,200 by 2033. The increased benefits of a zero VAT rate, as reflected in the growing number of avoided skin cancer cases over time, align with the projected increase in the incident rate. See Figure 4 page 10.

3.The research estimates suggest that in 2025, 294 deaths associated with melanoma could have been avoided, and this number increases to 349 in 2033. See figure 5 page 11.

4.https://news.cancerresearchuk.org/2024/05/27/skin-cancer-cases-reach-all-time-high/

5. There could be around 26,500 new cases of melanoma skin cancer every year in the UK by 2038-2040, projections suggest: https://www.cancerresearchuk.org/health-professional/cancer-statistics/statistics-by-cancer-type/melanoma-skin-cancer#heading-Zero 

6. This figure doesn’t take into account any follow up treatments for stage 4 patients which would increase this cost considerably.  For example, stage 4 patients have scans every 3 months if on treatment.

 7. That is, for each £1 lost on VAT revenue, the public would save £2.40 in NHS treatment costs. See Figure 6 page 11. 

8. 45.02% of respondents to a UK-wide survey of adults aged 16-65 said they think sunscreen is too expensive. 60.19% said they would use it more if it was 20% cheaper. 

9. 10.41% of respondents said they don’t use sunscreen when in the UK because it’s ‘too expensive’.This increased to 11.88% of people in the lowest income bracket (up to £18,999 per year). 15.50% of respondents said they don’t use sunscreen when in a hot country because it’s ‘too expensive’. 81.84% of people said they think VAT should be removed from sunscreen.

ENDS

#VATBurn

Notes to editors:

  • Alma Economics was commissioned by Melanoma Focus to estimate the financial and non-financial impact of applying a zero-rate VAT on sunscreens. As part of the study, Alma Economics conducted a quantitative analysis using clinical and economic data, along with insights from the literature, to assess the impact of VAT abolishment on:
  • Melanoma and non-melanoma skin cancer incidence and mortality (by stage for melanoma);
  • NHS cost savings associated with skin cancer treatment (by stage for melanoma); and
  • Lost tax revenue linked to the zero-rate VAT.
  • Read the Modelling the impact of zero-rate VAT on sunscreen report here.
  • Read the report Q&A here.
  • Find out more about the VAT Burn Campaign and read the letter handed to the Prime Minister in November 2023 here.
  • The Melanoma Focus survey was conducted among 2,003 people in the UK aged 16-65 by Censuswide in March 2024. View the full data tables here.

About Melanoma Focus:

  • Melanoma Focus is a national charity dedicated to providing a comprehensive and authoritative source of information for public and professionals alike, as well as supporting education and promoting research about melanoma.
  • The charity is committed to educating the UK public about melanoma skin cancer and runs annual national awareness campaigns during Melanoma Awareness Month.
  • Melanoma Focus runs a free and confidential helpline at 0808 801 0777
  • https://melanomafocus.org/