The mental health crisis among children and young people in the UK has reached a critical point, with profound implications for both individuals and the national economy. According to new research, the lifetime earnings lost due to mental health problems in children are projected to exceed a staggering £1 trillion. This research, released to launch the Future Minds mental health campaign, underscores the urgency of addressing the issue to prevent further damage to both young people’s futures and the broader UK economy.
The financial burden of not tackling childhood mental health is becoming increasingly clear, as children and young people face a wide range of mental health issues, including anxiety and depression, at an alarming rate. More than 500 children in England are referred to mental health services every day due to anxiety, and the number of referrals for emergency mental healthcare has risen by 10% over the past year. One in five children and young people now experience a mental health problem, which, according to the charities behind the Future Minds campaign, must be acknowledged as a crisis by the government. The impact of this crisis on children’s futures cannot be overstated. Research shows that young people who experience mental health problems during childhood often face poorer academic performance, lower job prospects, and reduced earnings potential throughout their lives. Mental health issues can result in persistent school absences, which negatively affect children’s educational outcomes and increase the strain on the educational system. In the 2023-24 school year alone, persistent absenteeism cost the UK economy £1.17 billion.
The effects of childhood mental health problems are not confined to education. Studies have shown that mental health difficulties significantly reduce young people’s chances of securing long-term, stable employment. Between 2012 and 2023, the proportion of 16- to 34-year-olds out of work due to mental ill health nearly doubled, further exacerbating the financial costs of the mental health crisis. The rise in mental health-related claims for incapacity and disability benefits is expected to add an additional £21 billion to the national spending on these benefits by 2028-29. The cumulative cost of childhood mental health problems on the UK economy is projected to be £1.16 trillion in lost lifetime earnings, making it clear that the issue is not only a matter of public health but also one of economic stability.
The impact on public services is equally concerning. Delays in accessing treatment and mental health services are exacerbating the problem. The report highlights that the financial cost of young people’s deteriorating mental health while waiting for treatment is approaching £295 million annually. With the current lack of capacity in the mental health system, many young people only receive help once their mental health has significantly worsened, placing further strain on emergency services and leading to longer waiting times for care.
The charities behind the Future Minds campaign, including the Centre for Mental Health, the Centre for Young Lives, the Children and Young People’s Mental Health Coalition, and YoungMinds, have called for an independent review of the causes behind the mental health crisis in children, as well as a comprehensive plan to address the issues. The charities are calling for significant investment in mental health services, including an expanded mental health workforce, increased funding for mental health support teams in schools, and more community-based mental health services.
Anne Longfield, former children’s commissioner for England and executive chair of the Centre for Young Lives, stressed that the forthcoming 10-year NHS plan and the government’s spending review must include substantial reforms and investments in children’s mental health services. Failure to address the crisis will not only harm those struggling with mental health issues but will also have long-term consequences for the country’s economic growth and social well-being.
Dr. Mike McKean, vice president of policy at the Royal College of Paediatrics and Child Health, emphasized the need for long-term investment in children’s mental health. He argued that addressing the crisis requires not only urgent action but also sustainable reforms that focus on prevention and provide timely care in communities.
In response to the growing crisis, NHS England has acknowledged the increasing demand for mental health services and the strain on existing resources. NHS mental health services are seeing record numbers of children seeking help for conditions such as depression and anxiety. In response, the NHS is expanding access to mental health teams in schools, with plans to ensure that half of England’s pupils will have access to a specialist by spring 2025.
The UK government has also pledged to address the mental health crisis, with a government spokesperson emphasizing their commitment to reforming the system. The government has announced £26 million in funding to open new mental health crisis centers and has committed to providing access to specialist mental health professionals in every school, as well as recruiting 8,500 additional mental health workers.
While the steps being taken are welcome, experts argue that more urgent and comprehensive action is needed to prevent the crisis from deepening further. Without a long-term, strategic approach to children’s mental health, the UK risks not only further harm to vulnerable young people but also significant economic losses. Addressing the childhood mental health crisis now will have a lasting impact on improving the well-being of future generations and the stability of the nation’s economy.
In conclusion, the mental health crisis facing children and young people in the UK is not just a public health emergency but an economic one as well. The estimated £1.1 trillion cost in lost lifetime earnings is a stark reminder of the need for urgent action. Experts and charities are calling on the government to recognize the scale of the crisis and invest in effective mental health services and support systems to prevent further harm to the nation’s young people and to secure a healthier, more prosperous future for all.
