?New research: Improving health literacy could save over AU$7 billion* to the economy per year, new study finds

Haleon ANZ

This Health Literacy Month, Haleon, a global leader in consumer health, is calling for improved health literacy support to address the growing economic burden of low health literacy rates.

9 October 2025: New research has revealed the enormous impact that low health literacy has on both the Australian health system and individuals.

The Health Inclusivity Index, an independent research programme undertaken by Economist Impact and supported by Haleon, revealed that investing in inclusive everyday health could unlock billions in healthcare savings, boost GDP, and prevent millions of deaths annually.¹

In Australia, over AU$7 billion* could be gained annually just by reducing the prevalence of low health literacy by 25%.²

Health literacy is people’s ability to access, understand and use information to make decisions about their health and wellbeing.³

People with low health literacy often experience challenges understanding medical information, navigating healthcare systems, and making informed decisions about their care. This means they could struggle to read the directions on medication labels, fill out forms at the doctors or even measure the right dosage of a medicine.

This results in people with low health literacy spending almost three times more annually on healthcare costs than those with high health literacy.¹

Barriers to health literacy are most often faced by individuals from lower socio-economic backgrounds, culturally and linguistically diverse communities, and people living with language and learning disabilities.¹

Addressing health literacy from both an individual and systems-focused approach is a critical step towards addressing the broader social factors that drive health disparities across Australia and help to enhance health inclusivity.

The Health Inclusivity Index echoes the World Health Organisation’s framework for strengthening health literacy, which highlights three key areas for action: organisational literacy, professional literacy and personal literacy.

This means supporting systems and structures, primary healthcare professionals and individuals to advance health literacy globally.^1,3

Jeremy Donovan, ambassador for the Australian Literacy and Numeracy Foundation (ALNF), says: “Prioritising health literacy across all three areas starts at a community level. I know first-hand the importance of being able to read and write to overcome everyday challenges - from advocating for my health to processing health information.

Building literacy from a young age is a crucial first step towards increasing health literacy and ending health disparities related to inclusivity and accessibility.”

The ALNF, in partnership with Haleon ANZ, are working towards strengthening personal literacy on a grassroots level with literacy programs aimed at improving educational outcomes for children in marginalised communities.

Programs like The Breakfast Library offer a safe, inclusive space where children can learn, read, and engage with their peers while enjoying a nutritious breakfast. Programs prioritise equipping young people with the literacy skills needed to value their personal health, wellness, and self-care.

Anish Patel, General Manager at Haleon ANZ, says: "We’re proud to support this research by Economist Impact, which highlights how low health literacy affects not only individuals, but also the Australian health system.

At Haleon ANZ, we’re passionate about putting health in more hands and empowering people to better manage their own health. Improving health literacy is a vital step towards achieving this by enhancing inclusivity across the healthcare system. When individuals have the right knowledge and skills required to look after their everyday health with confidence, we are one step closer to a stronger, healthier community.”

Download the full report here: https://impact.economist.com/projects/health-inclusivity-index/documents/health_inclusivity_index_phase3_report.pdf

Get more insights from the Health Inclusivity Index: Health Inclusivity Index

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Media Contacts

Maitreyi Kulkarni, Account Executive - Palin Communications, [email protected], 0413 712 977

About Haleon and Health Inclusivity

Haleon’s social impact goal is to empower millions of people a year to be more included in opportunities for better everyday health – with the company aiming to reach 50 million people a year by 2025. In 2024, the company delivered its goal one year ahead of plan, empowering 50.2 million people to be more included in opportunities for better everyday health.

We have identified three key barriers to health inclusivity that Haleon is well placed to help address, which are:

health literacy

healthcare accessibility

bias & prejudice

Examples of Haleon’s efforts to break down barriers to health inclusivity include:

Health Literacy:

Our Caltrate calcium supplement brand in China has run several initiatives to raise awareness of the risks of osteoporosis and how to actively prevent and manage it. This includes working with Health Professionals to reach more consumers through online education, in-person outreach and bone density tests. So far, the programme has deeply engaged with 55 million consumers, conducted bone density tests for 4.5 million consumers, and covered more than 120 cities.

Healthcare Accessibility:

Haleon has partnered with Smile Train to enabling over 19,000 life-changing cleft surgeries and 13,000 non-surgical treatments, including nutritional support, dental care, and speech services, in 98 countries. In the US, Haleon, in partnership with Walmart, is helping bring dental care to rural and underserved communities in so-called “dental deserts.” Pop-up clinics deliver essential services, including denture fittings and oral health education, at no cost to patients.

Bias and Prejudice:

Theraflu’s ‘Right to Rest and Recover’ programme is a multi-year initiative in the US and Poland to champion the right for workers to take time off when they fall sick. In its third year, in the US, Theraflu collaborated with A Better Balance, an organisation that helps workers better understand their rights to sick leave, while continuing to address the cultural pressure people experience to 'go to work sick'. In Poland, the programme tackles the pressure working mums experience to 'go to work sick' which is linked to fears that taking time off could impact their current and future job prospects.

About Haleon
Haleon (LSE / NYSE: HLN) is a global leader in consumer health, with a purpose to deliver better everyday health with humanity. Haleon’s product portfolio spans five major categories - Oral Health, Pain Relief, Respiratory Health, Digestive Health and Other, and Vitamins, Minerals and Supplements (VMS). Its long-standing brands - such as Advil, Sensodyne, Panadol, Voltaren, Theraflu, Otrivin, Polident, parodontax and Centrum - are built on trusted science, innovation and deep human understanding. For more information, please visit www.haleon.com

About Economist Impact

Economist Impact combines the rigour of a think-tank with the creativity of a media brand to engage a globally influential audience. We believe that evidence-based insights can open debate, broaden perspectives and catalyse progress. The services offered by Economist Impact previously existed within The Economist Group as separate entities, including EIU Thought Leadership, EIU Public Policy, Economist Events, El Studios and SignalNoise. Our track record spans 75 years across 205 countries. Along with creative storytelling, events expertise, design-thinking solutions and market-leading media products, we produce framework design, benchmarking, economic and social impact analysis, forecasting and scenario modelling. This makes Economist Impact's offering unique in the marketplace. Visit www.economistimpact.com for more information.

*AUD numbers have been derived by Haleon ANZ using a currency converter (Convert United States Dollar to Australian Dollar | USD to AUD Currency Converter) which is accurate as of 8 October 2025

References

Economist Impact. Health drives wealth: the economic impact of health inclusivity. Findings from the third phase of the Health Inclusivity Index. Available at: https://impact.economist.com/projects/health-inclusivity-index/documents/health_inclusivity_index_phase3_report.pdf?v=2025. Accessed August 2025.

Economist Impact. Health Inclusivity Index, Country Snapshot – Australia. Available at: https://impact.economist.com/projects/health-inclusivity-index/snapshots/health_inclusivity_index_phase3_country_snapshot_australia.pdf. Accessed August 2025.

World Health Organisation. 2024. ’Health Literacy’ WHO Fact Sheet. Available at: https://www.who.int/news-room/fact-sheets/detail/health-literacy. Accessed August 2025.

Australian Research Alliance for Children and Youth. 2023. Literacy begins at birth. Available at: https://www.aracy.org.au/news/literacy-begins-at-birth/#:~:text=Figures%20from%20the%20Australian%20Bureau,of%20everyday%20life%20and%20work. Accessed August 2025.