Mental Health Foundation: Mental health problems cost the Scottish economy at least £ 8.8 BILLION a year

  • Mental Health Foundation calls for Scottish Government commitment to cost-effective prevention of poor mental health
  • Cost to UK economy is at least £117.9 billion, around 5 per cent of GDP

Mental health problems cost the Scottish economy at least £8.8 billion annually according to a new report published today by the Mental Health Foundation and London School of Economics and Political Science with support from the University of Strathclyde.

Almost three-quarters of the cost (72%) is due to the lost productivity of people living with mental health conditions and costs incurred by unpaid informal carers who take on a great deal of responsibility in providing mental health support in our communities.

To put the economic cost of mental ill-health in Scotland into context, the NHS Scotland operating budget for 2020/21 was around £15.3 billion.

The UK cost is at least £117.9 billion – equivalent to around 5 per cent of the GDP.   Across the UK there were 10.3 million recorded instances of mental ill-health over a one-year period, and the third most common cause of disability was depression.

The report, ‘The economic case for investing in the prevention of mental health conditions in the UK’, makes the case for a prevention-based approach to mental health which would both improve mental wellbeing while reducing the economic costs of poor mental health.

Lee Knifton, Director of Mental Health Foundation in Scotland, said: “Our report reveals the opportunity we have to revolutionise our approach to mental health in Scotland.

“It’s time to increase investment in population-level prevention of mental health problems. 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.”

Research gathered from the UK and internationally shows the potential public health and economic benefit of programmes that target and prevent mental health problems and empower more people to live well, for example, by addressing issues such as perinatal depression, bullying, and social isolation in older people.

Other well-evidenced initiatives include promoting positive parenting, rapid access to psychological and psychosocial supports for people with identified needs and building supportive and inclusive workplaces.

A growing number of studies report on the significant return on investment from parenting programmes.  Methods and costs vary, but those assessed in this way cover a long-time frame and report positive returns of up to £15.80 in long-term savings for every £1 spent on delivering the programme.

Similarly, a review of workplace interventions found savings of £5 for every £1 invested in supporting mental health.

Lead author of the report, David McDaid, Associate Professional Research Fellow in Health Policy and Health Economics at London School of Economics, said: “Our estimate of the economic impacts of mental health conditions, much of which is felt well beyond the health and social care sector, is a conservative estimate.

“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 coordinated actions not only within the health and social care sector, but across the whole of government.”

The £8.8 billion costs to the Scottish economy is likely to be a significant underestimate of the true costs – based on the lack of data available around some key areas.

For example, health service costs are based on the number of people receiving treatment and do not consider the many people who would benefit from treatment but either does not receive it because of pressure on services or do not seek help. 

Additionally, no costs are included for reduced performance at work due to mental health problems, costs to criminal justice and housing systems linked to poor mental health, costs associated with addiction issues, or the costs associated with self-harm and suicide.

To read the full report visit www.mentalhealth.org.uk.