A proposed ban on conversion therapy by the Labour party could cost businesses and taxpayers up to £100 million over ten years, according to a government impact assessment. The legislation, which aims to outlaw attempts to change an individual's sexual orientation or gender identity, is expected to result in 'negative' impacts on private firms and public sector organizations due to the need for staff training.
The full financial implications, including costs to the police, courts, and prisons, are yet to be calculated. However, the assessment projects that the law could yield a societal benefit of £783 million over the same period, primarily by reducing instances of depression among transgender and gay individuals.
Critics have questioned these figures, expressing concern that the ban could inadvertently lead to parents facing legal repercussions for discouraging their children from transitioning. Maya Forstater, Chief Executive of Sex Matters, described the projected economic benefit as "pure fantasy based on shaky evidence" and argued that the costs have been "grossly underestimated," omitting significant expenses related to the justice system and child welfare services.
Shadow Equalities Minister Joy Morrissey stated that imposing over £100 million in additional costs through this legislation would be inappropriate at a time when businesses are already facing economic challenges. The impact assessment acknowledges a "relatively limited" evidence base for conversion therapy and notes that incidents are not officially recorded, leading to estimates that rely on self-selected samples.
Using a survey commissioned by the lobbying group Stonewall, the assessment estimates that between 75,000 and 93,000 people annually in England and Wales are victims of conversion practices. The report suggests that improving the quality of life for these individuals will lead to a monetized benefit of £783 million over 10 years, partly through expected reductions in work-related sick leave.
Despite the projected benefits, the report concedes that the overall impact on businesses is "likely to be negative." One-off "familiarisation" costs are estimated at £13.6 million for the private sector, with additional familiarisation costs for religious groups and the LGBT+ voluntary sector. Total estimated costs to businesses and the public sector over a decade range from £59.7 million to £103.3 million.
Taxpayer costs for training staff across police, healthcare, education, and social services are predicted to be £45.8 million. A victim support service is estimated to cost an additional £240,000 over three years. The Ministry of Justice is still assessing the broader impacts on the justice system, including costs to the Prison and Probation Service and Criminal Legal Aid divisions.