Study shows cutting mental health wait times saves UK £1 billion

Research from Lancaster University indicates that reducing mental health treatment waiting times could save the UK economy £1 billion annually. The study, soon to be published in the Review of Economics and Statistics, highlights the link between timely mental health care, employment retention, and economic benefits.

Professor Roger Prudon led the analysis, revealing that a one-month delay in starting mental health treatment results in 2% of patients losing their jobs. This finding draws from data on waiting times in the Netherlands from 2012 to 2019, where a one-month reduction in treatment delays could enable around 80,000 people to access care each year, saving over €300 million (£253 million) in unemployment costs.

Given similar patterns of mental health issues and treatment times in the UK, Prudon estimates that a comparable reduction in waiting times could assist approximately 300,000 individuals annually. This would equate to savings of around £1 billion in lost income taxes and unemployment benefits.

Prudon noted the scarcity of data on NHS mental health treatments in the UK, but emphasized that both the UK and Netherlands face rising demands for care and lengthy waiting lists. He stated, “The issue of waiting times has persisted for at least a decade. While some argue against increased spending on mental health, the economic case for timely treatment is clear. Investing in mental health services will retain more individuals in the workforce, ultimately saving money.”

In 2023-24, about 3.8 million people in England accessed NHS mental health services, a 40% increase compared to pre-pandemic figures. To achieve a one-month reduction in waiting times, the UK would need to hire approximately 400 additional mental health professionals, costing around £33.6 million annually. However, Prudon argued that the potential savings for the economy far outweigh these costs.

Current government initiatives aim to reduce waiting times for various health services, but mental health care lacks a clear commitment in these plans. Research by Rethink Mental Illness shows that individuals are eight times more likely to wait over 18 months for mental health treatment compared to physical health care.

The government acknowledges the existing challenges in the mental health system, stating, “We are transforming mental health services through our Plan for Change, investing an extra £680 million this year to hire more staff, increase therapy availability, and cut waiting times.” This effort aligns with broader goals to enhance economic growth and address the rising number of working-age adults exiting the labor force due to health issues.