Future Minds Campaign launches with new research warning trillion-pound cost of failing to tackle children's mental health crisis is holding back Government's growth plans

New research released today (Wednesday 5th February) warns that the mental health crisis facing children and young people will prevent the Government from its mission of boosting economic growth and productivity as well as impacting the lives of thousands of young people. The research estimates that the long-term impact of mental health problems in childhood now costs the UK over £1 trillion in lifetime lost earnings. 

The research is published as part of the launch of a new campaign bringing together four of the UK's leading children and young people's and mental health organisations – 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 – which is urging the Government to deliver urgent reform and investment to boost children's mental health services in its forthcoming Spending Review and 10 Year NHS Plan.

• New research published by the campaign shows how the cost of poor mental health is holding back the Government's growth plans through reduced tax receipts, increased benefit spending, a £24bn a year cost to employers in lost productivity, and the staggering amount of £1 trillion in lost earnings.

• The research also reveals the cost of deteriorating mental health between young people's referral and receiving support is now £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. 

• It also finds that the costs of persistent absence from school – which has mirrored the rise in mental ill health – were £1.17bn in the 2023/24 school year.

• The campaign calls for increased investment so 70% of diagnosable need is met by mental health services by the end of this Parliament and for investment in community services such as Mental Health Support Teams and open access hubs that intervene early and prevent mental health problems from worsening.

• The campaign also urges 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”,  and also calls for an independent Government-commissioned review to examine the causes of the children's mental health crisis, including the role played by social media.

Today's campaign comes at a time of unprecedented crisis in children and young people's mental health. One in five children and young people now experience a common mental health problem such as anxiety or depression. The number of young people in contact with mental health services has never been higher, and yet around 60% of children considered to have a diagnosable mental health condition have no contact with NHS-funded mental health services.

Children and young people's mental health services continue to be considerably under-funded relative to demand. Millions of families across the country are experiencing the everyday reality of a young person living in distress.

The campaign argues that acting to reverse the youth mental health crisis won't just support the Government to deliver its health mission, it will be critical to Labour's growth, opportunity, and safer streets missions too. 

Research by the Future Minds Campaign reveals the failure to boost support for children and young people with mental health problems is having a huge impact on the economy, on children's education, on the children's social care system, and is a major cause of concern for parents.

• A major study published in 2015, analysing 50 years of child development data, estimated that the long-term impact of mental health problems in childhood costs the UK a total of £550 billion in lost earnings across the lifespan. Since the study was conducted, the prevalence of poor mental health among children and young people has doubled. Therefore, estimates could put today's losses at a total of over £1 trillion – before adjusting for inflation.

• Poor mental health is estimated to cost the economy at least £300 billion a year in England and the Government has identified how rising prevalence of mental ill health in young people is having a huge impact on labour market participation. This harms economic growth, reducing tax receipts and sharply impacting Government spending on benefits.

• A recent survey identified 46% of working parents saying they are concerned about their children's mental health. There is also a £8bn annual cost to UK employers due to reduced performance, time missed for caring responsibilities, or parents leaving their roles entirely.

• Spending on working-age incapacity and disability benefits is forecasted to rise by £21 billion per year in real terms by 2028-29, with mental ill health driving claims among young adults. 

• More than one in ten pupils with diagnosable mental health difficulties aged 8-16 years miss more than 15 days of school in a termcompared to only 1.5% of pupils without. The cumulative costs of persistent school absence are substantial. The Future Minds campaign estimates that the cumulative costs of persistent absence were £1.17 billion in the 2023/24 school year.

• Recent analysis by the Association of Directors of Children's Services has found that mental health has been increasingly cited as a factor within child early help assessments.

The Future Minds Campaign argues that reform of mental health care for children and young people could yield huge benefits in efficiency and clinical outcomes. It is 100 times cheaper to treat a young person in the community compared to an inpatient setting, and the Government's commitment to shift from hospital to community care presents a major opportunity to seize these savings. However, change in these systems will be impossible without upfront investment.

Ahead of the Government's Spending Review, the Future Minds Campaign is calling for:

• Increased investment in children and young people's mental health services, with a commitment to meeting 70% of diagnosable need by the end of this Parliament. Current spending on children and young people's mental health amounts to just over £1.1 billion per year, meeting only 40% of need. To meet 70% of need by the end of this parliament, an additional £167 million will be needed in the first year, with further incremental increases required by the end of the 2028/29 financial year.

• The full rollout of Mental Health Support Teams by the end of this Parliament, with a commitment to adapt the model to meet a broader range of need. Commit to £455 million per year by 2028/29 to enable 100% of national coverage for Mental Health Support Teams – this money should be part of the overall increase in spending on children and young people's mental health services. 

• The delivery of “open access mental health services for children and young people in every community”, initially through the Young Futures programme. Allocate £169 million per year to roll out a national network of open access mental health hubs for children and young people up to age 25 in every local authority area. A further £74m to £121m should be identified to cover capital and set up costs. 

• An independent Government-commissioned rapid review to examine the causes of the rise in prevalence in children and young people's mental health. Recent polling found that 59% of adults aged 18 and over believe that political leaders have failed to do enough to address the mental health needs of children and young people in the last decade. One of the major barriers to meaningful action being taken has been contentions about the role of different drivers of the crisis.

• A comprehensive children and young people's mental health workforce plan.

• Increased local government funding to support investment in prevention and early intervention. Return the public health grant and youth services spending to at least 2015/16 level, £750m and £1.4 billion per year respectively, and address the gap in spending for children's services and provision for Special Educational Needs and Disabilities. For children's social care, a minimum investment of £3 billion will be needed to address the shortfall in spend. 

Baroness Anne Longfield, Executive Chair of the Centre for Young Lives and a former Children's Commissioner for England, said

“One in five children and young people now experience a mental health problem - almost double the 2017 figure. This 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 Prime Minister's own priorities already provide opportunities to prioritise children and young people's mental health and to reverse these worrying trends. There are proven cost-effective models of care that could have a transformative effect on young people's health and our economy with the right levels of investment. 

“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 at 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.

“The risks and gaps are biggest for the most disadvantaged and marginalised groups of young people.

“The Government can and must act now to turn things around. By investing in children's mental health services, the Government can make sure that the mental health of another generation of young people is not left to chance.”

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 8 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.

“But it also has a huge cost to the economy, one that will impact the whole of society. As this new research lays bare, failure to address this emergency impacts all parts of a young person's life and the Government's agenda for economic growth.

“It doesn't need to be this way, this Government has a real opportunity to show they are ambitious about young people and their mental health. By acting now, they can make a difference to thousands of young people's lives, and protect the Government's economic ambitions."

ENDS

NOTES TO EDITORS:

1. 
   The Future Minds Campaign's research document is available here.

2. The campaign's estimate of £1trn cost in lost earnings is derived from  research published in 2015, analysing 50 years of child development data. It estimated the long-term impact of mental health problems in childhood costs the UK a total of £550 billion in lost earnings across the lifespan. Since the study was conducted, the prevalence of poor mental health among children and young people has doubled, so we estimate today's losses at a total of over £1 trillion – this is before adjusting for inflation.

3. The children and young people's mental health crisis in numbers:

Costs of inaction

£1 trillion – cost in lifetime lost earnings

£24bn per year – cost to employers of ‘presenteeism'

£295m a year – cost of young people's deteriorating mental health while waiting for help

£1.17bn per year – costs caused by persistence absence from school

Savings made by reducing mental ill health in young people

Reduced burden on adult mental health services in later life

Reduced spending on physical health services

Reduced demand for children's social care

Increased school attendance and attainment

Fewer ‘NEET' young people

Increased workplace productivity

Reduced youth violence

Cost-effectiveness of mental health interventions

For every £1 invested in CAMHS, the return on investment is an estimated £2.20–£3.50 in benefits to individuals and an additional £1–£1.80 in savings to the Government

Mental Health Support Teams pay for themselves within two years - they have a benefit cost ratio of 22, meaning that for every £1 spent, it generates £22 in wellbeing benefits

Drop-in mental health support is cost-effective 94% of the time for young people with long-term physical health conditions

It is 100 times cheaper on average to treat a young person in the community compared to as an inpatient

4. About the Future Minds Campaign. In the face of a major and growing crisis in children and young people's mental health, four of the UK's leading children and young people's and mental health organisations – Centre for Mental Health, the Centre for Young Lives, the Children and Young People's Mental Health Coalition and YoungMinds, with the support of the Prudence Trust – have joined forces to call on the Government to deliver urgent reform and investment, ahead of the major long-term policy decisions that will be taken in the forthcoming Spending Review and 10 Year Plan for Health in England.