The cost of domestic violence in lost economic output is down by nearly 30 per cent since 2001, according to updated research produced by Professor Sylvia Walby of Lancaster University.

The report was launched by the Corporate Alliance Against Domestic Violence (CAADV).

Attorney General Baroness Scotland QC said simple actions by employers could drive this down much further, to the benefit of both companies and individuals.

The new research shows that while the cost of domestic violence is still substantial, investment in public services is paying off for the economy, reducing the cost of lost economic output due to working days lost because of injuries from £2.7bn in 2001 to £1.9bn in 2008. The cost of public services has gone up - reflecting their improvement and increased user take up. As a consequence, the rate of domestic violence and its cost to business and society has fallen. The total cost of domestic violence fell from £22.8bn in 2001 to £15.7bn in 2008.

There are three major forms of cost: the cost of public services; human and emotional costs (quantified using methodology developed by the Department for Transport and the Home Office); and lost economic output.

Overall, these combined costs have fallen since 2001 because of the fall in the rate of domestic violence, due in part to the increased use and development of public services.

Baroness Scotland was speaking as the Chair of CAADV, which aims to assist employers to develop good practice to protect and support victims.

She said:“It is encouraging to see more evidence of how domestic violence policies and a coordinated community response are reducing the impact of this pernicious crime. But we clearly still have a long way to go.

“Enlightened employers are key partners in this endeavour. With many victims targeted in or around their workplace, it makes sense for employers to be aware of the issues and what they can do.

“But it is not only socially responsible for employers to address the issue of domestic violence, it makes good business sense as well.

“Some employers may think that putting domestic violence policies in place is difficult or might be unwelcome or intrusive. But there are simple, low-cost, practical actions that any employer can take which can make a big difference.”

Professor Walby, who undertook the research which updated her 2004 report The Cost of Domestic Violence, said: “The cost of domestic violence is still far too high, but the fall in the costs to business and society shows what can be achieved when effective policies are put in place. It is important to have the evidence and statistics of the extent and impact of domestic violence so that we can evaluate new developments reliably.”

Ben Willmott, Senior Public Policy adviser at the Chartered Institute of Personnel and Development, said: “It's in employers' interests to consider developing a policy on domestic violence. Managers need to be able to identify the early warning signs that someone may be the victim of such abuse and then respond appropriately. Having a policy will also highlight to victims of domestic violence what support is available in the organisation - such as emergency leave, flexible working or counselling - and may encourage people to come forward and ask for help rather than suffering in silence."