Mental health has become a persistent concern for the UK population and economy, with ministers and civil servants scrambling around, trying to find solutions to an ever-growing problem. There are plans for policy announcements later this year, but will it be enough to get Britain back to work?
The issues multiplied in the wake of the pandemic. A London School of Economics report indicated mental health issues cost the UK £118bn a year, equivalent to nearly 5 per cent of the country’s gross domestic product. More than half of inactive workers because of long-term sickness in Q1 this year said they suffered from depression or anxiety, according to the Office for National Statistics (ONS).
These worrying numbers have put government officials on edge. Chancellor Jeremy Hunt has set his sights on the Autumn Statement to address the increasing number of people unable to work due to long-term mental illness. In the Spring Budget, Hunt identified getting people who can work back to work and increasing the productivity of those working, as critical priorities for growing the economy. So helping the long-term unemployed is the next logical step.
The UK economy's relative underperformance compared with other developed nations can be attributed, in part, to the phenomenon of "missing workers" – a situation that arose when millions ceased working during the pandemic. The government's strategy to rejuvenate economic growth involves reintegrating these individuals back into the workforce. Proposals outlined in the March Budget, such as adjustments to health-related benefits by adopting a new fitness-for-work regime to assess eligibility and universal credit rules, aim to alleviate the worker shortage.
How the sharp rise in mental illness affected the economy
It reduces productivity among those living with mental health conditions, as a study by the University of Sheffield suggests. More frequent work absences lead to reduced productivity and adds to the taxpayer burden due to increased healthcare demands. Moreover, individuals not working contribute less to the economy through reduced consumption of goods and lower tax contributions. So it’s a lose-lose-lose for those suffering, those trying to help and for everyone else around them.
With the economy still struggling, the country’s workforce seems to be following suit. New ONS data suggests workers missed a record high of 185.6mn work days due to sickness or injury in 2022.
Despite a slight improvement in 2021, the Health Index in England remains below 2019 levels. The index consists of three domains: healthy people, healthy lives, and healthy places. Despite an overall improvement in the people domain in 2021, some conditions did not see an improvement at all. There were worsening difficulties in daily life and mental health, both dropping by 2.5 points and 0.8 points respectively. According to the index, the decline in mental health scores may be associated with the pandemic’s effects on daily life and well-being.
The pandemic significantly exacerbated the mental health crisis, with isolation and lockdown measures leading to a surge in affected individuals. Depressive symptoms among those aged 16 to 39 more than doubled from 11 per cent before the pandemic to 29 per cent, according to the ONS. This crisis places a substantial financial burden on the government. The Institute for Public Policy Research (IPPR) estimates that loss of earnings from long-term sickness cost the UK economy £43bn in 2021. Mental health accounted for one third of this.
What the government is saying
To reduce the benefits bill and get people back to work, work and pensions secretary Mel Stride is urging people with mobility and mental health problems to look for work they can do from home. In a Commons debate, Stride said: “We know many people who are on out-of-work benefits due to a health condition want to work, and, assisted by modern working practices, they could do so while managing their condition effectively.”
Undoubtedly, there has been a significant shift in how we work since the pandemic. He added: "This has opened up more opportunities for disabled people and those with health conditions to start, stay, and succeed in work."
How companies are responding
The impact of rising mental illness is not limited to individuals and the government; it also affects companies. According to a Deloitte study, the cost of poor mental health to employers increased by 25 per cent in 2021 compared to 2019. At a time when the NHS is under strain, employers are stepping in to fill the vacuum.
Some companies are also playing their part. UK company Kooth (KOO) uses its mental health support app to offer various tools, such as messaging with qualified therapists, peer-to-peer discussions, self-help resources, and online journaling. Some tech companies have partnered up with the NHS to tackle the crisis. Ieso Digital Health, a private company, is working with the NHS to offer cost-free cognitive behavioural therapy services.
Aviva (AV.) is also capitalising on the need for mental health support. The company has a new mental health option enabling large companies and organisations in the UK to support employees with all addictions.
The UK is in a mental health and subsequent economic crisis. Individuals, the government, and companies are all grappling with ways to tackle this. The boom for healthcare innovation will not disappear any time soon; in such a crisis, the industry will flourish, paving the way for good growth for companies.
