Mental illness costs England £300bn a year, equivalent to nearly double its NHS budget, according to research by the Centre for Mental Health thinktank. The study, commissioned by the NHS Confederation’s mental health network, analysed economic, health and care impacts as well as human costs from reduced quality of life.
In 2022, mental ill health cost £130bn in human costs, £110bn in economic costs and £60bn in health and care costs. The greatest financial impact, £175bn, falls on individuals and their families, while the public sector incurs £25bn and business £101bn.
The report also assessed wider impacts such as presenteeism costing £41.8bn, staff turnover £43.1bn, and lost tax revenues £5.7bn. It warns that even the £300bn figure is likely a significant underestimate as other costs, including physical and mental health comorbidities (£10bn-£16bn) and prison mental ill health (£2.1bn), were excluded.
Referrals to NHS mental health services in England rose 44% between 2016-17 and 2021-22, from 4.4m to 6.4m, while the number in contact increased from 3.6m to 4.5m. Despite mental ill health accounting for 23% of the disease burden, it receives just 9% of NHS spending.
Andy Bell, chief executive of the Centre for Mental Health, said ministers 'cannot afford to ignore the devastating impact of mental ill health'. Sean Duggan of the NHS Confederation called the lack of investment a 'false economy'. The report’s release coincided with a joint letter from health organisations urging the health secretary to protect staff mental health services, noting 18 of 40 specialist hubs have closed since March 2023.
