Call for action as poor mental health of workers costs economy £110bn a year

Workers with poor mental health cost the UK economy £110 billion a year, a report backed by NHS chiefs has found.

The Centre for Mental Health, a charity which aims to advocate for fairer mental health policies, commissioned the NHS Confederation’s mental health network to carry out research for 2022.

It found that the total economic and social costs of mental ill health in England was £300 billion.

This is divided between a £110 billlion loss to the economy, a £130 billion loss in human costs – referred to as the value, expressed in monetary terms, of reduced quality of life among people living with mental health difficulties – and a loss of £60 billion in terms of health and care costs.

Losses to the economy because of mental ill health were calculated to include the business costs of sickness absence and “presenteeism” at work, as well as staff turnover and worklessness among people with mental ill health.

‘Unspoken anguish’

The report concluded that a failure to invest in early mental health help is a “false economy” which is making the country poorer and “causing unspoken anguish” to those affected.

Andy Bell, the centre’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.”

The researchers said their study for the first time incorporates some of the wider costs, including the impact of presenteeism - whereby someone experiencing mental health difficulties attends work but is less productive due to impaired cognitive function and emotional distress.

‘Deserving of policy attention’

The report stated: “While it is impossible to fully assess the extent of the problem, and a pound sign is admittedly an imperfect proxy for some of the impacts, there is nevertheless value in estimating the economic cost of mental ill health.

“It helps us to appreciate the significance of mental ill health as an issue deserving of policy attention, investment and reform.”

The authors said higher investment in “cost-effective health and care interventions - such as community services, early intervention and prevention - may reduce economic and human costs”.

In February, a report by the Resolution Foundation suggested people in their early 20s are more likely to be out of work due to ill health than those in their early 40s, and called for action on Britain’s mental health crisis.

That study found that the number of young people with poor mental health is rising, with 34pc of those aged 18 to 24 reporting symptoms of mental disorder, such as depression, anxiety or bipolar disorder in 2021-22.

It also found that younger people with mental health problems can have their chances at a good education blighted and can end up out of work or going into low-paid jobs.

Sean Duggan, the NHS Confederation’s mental health network chief executive, 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.”

It has ‘a lasting impact’

Marsha McAdam, the centre’s ambassador and vice-chairman of the mental health network, said: “Mental ill health has had a lasting impact on my finances, my use of social care and my quality of life.

“Had I been able to access meaningful early intervention years ago, my life trajectory could have been so different.

“The Government has the power to reduce the impacts of mental ill health on people like me.

“By properly investing in mental health support, they can ensure that everyone has the best chance of a mentally healthy life.”

Last week, Mel Stride, the Work and Pensions Secretary, faced criticism over his remarks that there was “a real risk” that “the normal ups and downs of human life” were being labelled as medical conditions that then held people back from working.