A new report released today by the Institute for Fiscal Studies (IFS), funded by the Joseph Rowntree Foundation and the Health Foundation, has unveiled a concerning deterioration in mental health across England and Wales since the COVID-19 pandemic.
This decline is reflected in the significant rise in disability benefit claims for mental health issues. The report highlighted a number of alarming trends, including the increase in mental health problems, a rising number of Disability Benefit claims, and increased strain on NHS mental health services.
Surveys indicate a steady rise in reported mental health issues. In the mid-2010s, around 8-10% of working-age individuals reported having a long-term mental health or behavioural condition. This figure has now surged to 13-15%.
One of the authors of the report, IFS Research Economist Eduin Latimer, commented:
“The rise in the number of people on disability benefits is a key motivation for the government’s upcoming Green Paper. A range of evidence suggests that mental health across the population has worsened, and – consistent with this – more than half of the rise in disability benefit caseload comes from claims for mental health and behavioural conditions.
“As well as obviously bad news on their own terms, mental health problems may also be contributing to the rising benefits bill.”
Since the pandemic, the number of 16- to 64-year-olds on disability benefits has increased by 0.9 million, reaching a total of 2.9 million. Notably, 7.5% of this age group are now claiming benefits, with over half of the new claims attributed to mental health problems.
The report also reveals a troubling increase in 'deaths of despair' – deaths attributed to alcohol, drugs, and suicide. These deaths have risen by 24% since the pandemic, equating to approximately 3,700 additional deaths in 2023 compared to pre-pandemic levels. This surge is strongly linked to worsening mental health conditions.
In December 2024, 2 million people were in contact with NHS mental health services, including those waiting for care. This represents a 36% increase in service contact since 2019. Additionally, the number of people in England with prescriptions for antidepressants has risen by 12% since 2019.
The Joseph Rowntree Foundation and the Health Foundation have both underscored the need for comprehensive strategies to tackle the root causes of mental health deterioration and improve access to mental health care services.
The NHS Confederation has also responded to the report, with Mental Health Director Rebecca Gray saying:
“This new report is yet more evidence of the rising impact of mental ill health across the country. Our members are working incredibly hard to meet the increasing demand for mental health care but it is clear that capacity is being outstripped by demand, often leaving people facing very long waits for care.
“Some of the most worrying trends are the rise in mental health conditions in children, young people and young adults. It is vital that we address potentially significant mental health issues as they emerge and not wait until people reach crisis point and have to drop out of work. This means tackling very long waits for CAHMS, in part by ensuring adequate resources are allocated but also by maximising benefits of digital technologies, creating new partnerships between health, schools and the voluntary sector to meet mental health needs in the most effective and efficient ways. There are many examples of great work but there is a risk that we reduce resource in areas which are truly preventative like children's mental health given other pressures in the healthcare system.
“Helping people continue working or return to work when they can is not just good for their health but vital for the country’s economy as well. Part of this is tackling NHS waiting lists so that people can get back to work, but a whole-government approach is needed as only 20% of our health is determined by healthcare, with the remaining 80% affected by wider determinants.
“Our analysis with the Boston Consulting Group (BCG) showed that reintegrating between half and three-quarters of people who have dropped out of the workforce for reasons of ill health since 2020 could deliver an estimated £109-177 billion boost to the UK’s GDP (2-3 per cent in 2029) and unlock £35-57 billion in fiscal revenue over the next five years. That is why we welcomed the Secretary of State for Health and Social Care’s pledge that his department will deliver billions of pounds in economic growth. This is all the more important due to the very difficult position public finances are in.
“What we also want to see is cross-government co-operation, collaboration and investment on health policy, recognising that most policy that impacts people’s health is made outside the NHS. This should be focused not just on the health service, but across the social determinants of health to improve the health of our nation as part of the prevention agenda. This is particularly the case for addressing mental ill health, which can be affected by a huge number of factors such as poverty, deprivation, insecure housing, and unemployment.”
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