Government will not boost economic growth until mental health crisis tackled

The Government will not boost economic growth and productivity until it tackles the the mental health crisis in young people, which is costing more than £1 trillion in lost earnings, experts have warned.

Four mental health organisations have called on ministers “to acknowledge the scale of the crisis in children’s mental health and ignore ‘wishful thinking’ that it is exaggerated or a result of ‘over-medicalisation’”.

It follows commentary, including from some academics and psychiatrists, that too many people are being diagnosed with mental illness when dealing with normal life “ups and downs”.

Last week, commenting on the number of people out of work in the UK, Conservative shadow home secretary Chris Philp said the country needs to “up its game” and get a work ethic.

According to NHS data, one in five children and young people experience a common mental health problem such as anxiety or depression.

Government figures also suggest the number of workers aged 16 to 34 who say mental ill health limits the type or amount of work they can do has increased more than fourfold over the past decade, and mental health is the leading work-limiting health condition among people aged 44 and younger.

For the new work, the Centre for Mental Health, Centre for Young Lives, the Children and Young People’s Mental Health Coalition and YoungMinds, with the support of the Prudence Trust, have shown that poor mental health leads to less tax revenue and increased benefits spending.

The calculations suggest there is a £24 billion a year cost to employers in lost productivity, as well as a “staggering” £1 trillion in lifetime lost earnings.

Furthermore, the cost of deteriorating mental health between referral for help for young people and receiving support stands at £295m a year.

“A lack of capacity in the system means too many young people reach crisis point, putting pressure on emergency, urgent and crisis services, straining bed capacity and creating enormous waiting times,” the organisations said.

When it comes to persistent absence from school – which has mirrored the rise in mental ill health – the cost was £1.17bn in the 2023/24 school year alone, they added.

Launching a new Future Minds Campaign, the groups called for greater investment so 70% of diagnosable need is met by mental health services by the end of this Parliament, and more community services such as access hubs.

An independent Government-commissioned review should also examine the causes of the children’s mental health crisis, including the role played by social media.

The campaign said spending on working-age incapacity and disability benefits is forecast to rise by £21 billion per year in real terms by 2028/29, with mental ill health driving claims among young adults.

Baroness Anne Longfield, executive chairwoman of the Centre for Young Lives and former children’s commissioner for England, said: “The decline in young people’s mental health is one of the biggest health, social and economic challenges of our time.

“Failing to adequately address it creates far costlier outcomes across a range of public services, including in health, education, welfare, policing and justice.

“It harms productivity, earnings and the Government’s agenda for economic growth. Current trends are simply not sustainable.

“Our organisations are joining together in this unprecedented way because we believe the next spending review and the Government’s next 10 Year NHS Plan must include a bold and ambitious plan for reform and investment in children and young people’s mental health services and support.

“It is wishful thinking to hope that this crisis is a cultural phenomenon or a result of over-medicalisation.

“Parents, health professionals, teachers, and children themselves see and experience it every day. They know how poor mental health is holding back the life chances of so many of our young people.

“The cost of doing nothing would be a disaster for those children struggling with mental health problems, but also for our nation, by seriously impeding many of the Government’s crucial missions and ambitions.”

Andy Bell, chief executive of the Centre for Mental Health, said: “Mental health difficulties in children and young people cast a long shadow that can last a lifetime without the right support.

“Yet children and young people’s services are underfunded, and levels of distress are rising markedly, leaving many thousands of children facing unacceptably long waiting times for support.”

Laura Bunt, chief executive of YoungMinds, said: “Growing up today is incredibly tough. Many young people are experiencing an avalanche of pressures which impact their mental health, including poverty, intense academic pressure, the online world and their future security.

“In the last eight years, the numbers of young people in need of mental health support have soared and’ despite increasing awareness, services remain significantly underfunded and unable to meet a growing unmet need.

“The cost to an individual young person who is struggling with their mental health without the right support is devastating, and the toll is felt on families, friends and the communities around them.”

A Government spokesperson said: “Young people with mental health issues are not getting the support or care they deserve, which is why this government will fix the broken system and ensure mental health is given the same attention and focus as physical health.

“We’ve already announced £26 million to open new mental health crisis centres, and as part of our Plan for Change, we will provide access to specialist mental health professionals in every school and recruit an additional 8,500 mental health workers.

“We are committed to raising the healthiest generation of children ever and recognise the importance of this to our number one mission – economic growth.”

Published: 05/02/2025 by Radio NewsHub