Mental health problems costing economy £8.8bn a year, research finds

Mental health issues cost the Scottish economy at least £8.8 billion every year, researchers have calculated as the Government was urged to increase spending on measures aimed at preventing problems developing.

Almost three-quarters of the economic hit is due to the lost productivity of people living with mental health conditions and costs incurred by unpaid informal carers, the report commissioned by the Mental Health Foundation found.

Report authors said the multi-billion cost to the economy is likely to be an underestimate of the true price once factors like reduced performance at work, increased burdens on the criminal justice and housing systems, and those associated with addiction, are taken into account.

Lee Knifton, director of the charity in Scotland, said it is “time to increase investment in population-level prevention of mental health problems”.

He added: “We can’t only treat our way out of the mental health crisis, which is worsening due to the pandemic, and we cannot afford the spiralling costs to both people’s wellbeing and our economy.

“We urge the Scottish Government to pay attention to what the evidence is telling us and commit to prioritising prevention in mental health.

“A prevention-first approach will not only help break down the barriers to good mental health but empower people to thrive at every stage of their lives and boost our economy in the long run.”

The report, published on Thursday, makes the case for a prevention-based approach which would both improve mental wellbeing while reducing the economic cost of poor mental health.

The charity, which worked on the report with the London School of Economics with support from the University of Strathclyde, said to put the economic cost of mental ill health into context, the entire budget for the NHS in Scotland in 2020/21 was £15.3 billion.

Across the UK, the economic hit is at least £117.9 billion – around 5% of GDP – and there were 10.3 million recorded cases of mental ill health over a one-year period.

Lead author of the report David McDaid, associate professional research fellow in health policy and health economics at the London School of Economics, said their calculation of the economic impact is a “conservative estimate”.

He added: “What is clear is that there is a sound economic case for investing in effective preventive measures, particularly at a time when population mental health may be especially vulnerable because of the Covid-19 pandemic.

“This requires further sustained and co-ordinated actions not only within the health and social care sector, but across the whole of Government.”

Kevin Stewart, the mental wellbeing minister in Holyrood, said “prevention and early intervention are key priorities we are taking forward in our approach to mental health and wellbeing”, and the Scottish Government’s Covid-19 Mental Health Transition and Recovery Plan underpins the effort.

He added: “We are already taking forward a range of key actions focused on prevention and early intervention which includes developing a new wellbeing website to support the mental health of Scotland’s people, an online platform for employers to support the promotion of mentally healthy workplaces, and support for grassroots community groups through the Communities Mental Health and Wellbeing Fund to deliver activities and programmes for adults facing social isolation, loneliness and mental health inequalities.

“In addition to the initial £15 million for this fund, a further £6 million was announced last week to meet the demand for local mental health and wellbeing projects.

“This reflects the importance that the Scottish Government places on promoting good mental health and early intervention for those in distress, ensuring that individuals can access a range of different types of support to match their needs.”