Mental illness costs England £300bn a year, analysis shows

The cost of mental ill health to society reached £300bn in 2022, according to research from the Centre for Mental Health, a think tank.

The study, commissioned by the NHS Confederation’s Mental Health Network, arrived at the figure by identifying three sets of costs:

• Economic costs of £110bn. Losses to the economy due to mental ill health. These include the business costs of sickness absence and ‘presenteeism’ at work, as well as staff turnover and unemployment among people with mental ill health.
• Human costs of £130bn. The value, expressed in monetary terms, of reduced quality of life and premature mortality among people living with mental health difficulties.
• Health and care costs of £60bn. This includes support provided by public services and informal care provided by family and friends.

The report, The economic and social costs of mental ill-health, says that the total cost of £300bn amounts to nearly double the NHS’s entire budget of £155.5bn in England in 2022. The cost is similar to the estimated impact of Covid-19 on the UK economy in 2020 (£260bn in 2020 prices) – a comparable economic impact, the authors say, to having a pandemic every year.

Bulk of costs fall to individuals and families

More than half the economic costs stemming from mental ill health, the report’s authors say, fall on people living with mental illness and their families. The cost to them is £175bn, while £25bn falls to the state and £101bn to business.

The report’s authors, Frederico Cardoso and Zoë McHayle, say that this is the first time a study of this kind has included wider costs in its calculations. These include the impact of presenteeism and staff turnover as a result of mental ill health. The calculations also incorporate the impact that having a mental health problem can have on someone’s ability to carry out unpaid work, such as housework, which sits at £3.4 billion, and the costs of having to pay for private therapy.

Failure to act will lead to higher costs

Cardoso and McHayle say that their report demonstrates the urgent need for action to turn the tide on rising poor mental health. They add that failure to act may lead to even higher costs that no government can afford to ignore.

Sean Duggan, chief executive of the NHS Confederation’s Mental Health Network, said: “This detailed financial analysis lays bare the cost of mental ill health to the nation. With the overall cost double the cost of the NHS’s entire annual budget, this simply cannot be ignored by policy makers. The false economy of failing to invest in mental health is making the country poorer and causing unspoken anguish to so many people and their loved ones. It is vital that we now invest in effective interventions that bring us closer to a mentally healthier nation for all.”

The Centre for Mental Health and the NHS Confederation’s Mental Health Network are calling for a comprehensive ten-year mental health strategy. It said that action is needed to protect and promote the public’s mental health, alongside sustained investment in mental health services.

Andy Bell, the Centre for Mental Health’s chief executive, said: “A pound sign can never fully reflect the suffering caused by mental ill health. But these figures signal an urgent need for the government, and all political parties at the next election, to prioritise the public’s mental health. This is like a pandemic happening every year. Inaction is not an option. A comprehensive, long-term cross-government plan is needed to reduce these costs and build a mentally healthier nation.”