A new report from the Future Minds Campaign has highlighted the growing challenges posed by mental health issues among children and young people in England.
The report outlines the financial, educational, and healthcare impacts of failing to address mental health conditions early, emphasising the consequences for the NHS, the economy, and wider society.
The report stated that more than one-in-five children and young people in England now have a diagnosable mental health condition. However, the NHS is currently only able to support around 40% of those in need. This gap between need and provision is contributing to increased strain on public services and broader societal impacts.
Economic impacts
The report estimates that poor mental health among young people costs the English economy at least £300bn annually. This figure includes factors such as reduced labour market participation, lower tax receipts, and higher government spending on benefits. Childhood mental health problems alone are projected to result in over £1tn in lost earnings across the current generation. The report also cited data indicating that individuals who experience mental health issues in childhood tend to earn less over their lifetime. Those affected earned 20% less by age 23, 24% less by age 33, and 30% less by age 50 compared to their peers. In addition, presenteeism — working while unwell — is estimated to cost UK employers £24bn annually, with parental concerns about children’s mental health contributing to an additional £8bn in lost productivity.
Baroness Anne Longfield, Executive Chair of the Centre for Young Lives and a former Children’s Commissioner for England, said: “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.”
Impact on education
According to NHS Digital data from 2023, 11.2% of pupils aged 8-16 with probable mental health disorders missed more than 15 days of school per term, compared to 1.5% of pupils without such disorders. Persistent absenteeism linked to untreated mental health issues is estimated to cost the education, health, and justice systems approximately £1.17bn annually.
The report also highlighted that 61% of young people aged 16-24 who are waiting for mental health support stop attending school or college. This contributes to reduced academic attainment and may affect future employment prospects.
Pressure on NHS and mental health trusts
The report noted a 65% increase in annual admissions to acute medical wards for mental health issues among children and young people in England between 2012 and 2022. With acute settings often not designed for mental health care, the increased admissions reduce hospital capacity for other healthcare needs.
The report attributes these trends to prolonged underfunding of children’s mental health services, which has led to longer waiting times and increased demand for emergency, urgent, and crisis services. Inpatient care for mental health issues is shown to be significantly more expensive than community-based care — up to 100 times more costly, according to the report.
Mental health trusts are also facing workforce challenges. The report indicated that vacancy rates in mental health services rose from 9% in 2021 to 17% in 2022, with staff retention identified as a continuing issue. High turnover rates are limiting the capacity to provide timely and effective care.
“The link between rising child and young people mental health issues and the demand placed upon acute services, particularly emergency departments, is clearly growing in significance,” Thalamos client director Zoe Seager said.
“Reducing the number of people with mental health concerns presenting in these environments, where often appropriate assessment environments are not available, should be a key target. Then, ensuring faster access to care and better patient history visibility are accessible will start to have a positive impact on the long-term economic impact of mental health issues.”
Disparities in mental health
The report identifies disparities in mental health outcomes among different groups. Children living in poverty are four times more likely to experience severe mental health difficulties by age 11 compared to wealthier peers. Autistic young people, those with physical or learning disabilities, and individuals from racialised or LGBT+ communities also report higher levels of mental health challenges.
Proposed actions
The Future Minds Campaign outlines several recommendations to address the mental health crisis among young people:
- Increased investment: Boost funding for children and young people’s mental health services to meet 70% of diagnosable needs by the end of the current Parliament, requiring an additional £167m in the first year
- Mental health support teams: Roll out Mental Health Support Teams across England to provide early intervention in schools, with an annual funding increase of £57m until 2029
- Open-access services: Establish open-access mental health hubs in every community through the Young Futures programme, with a projected annual cost of £169m
- Workforce development: Develop a comprehensive mental health workforce plan to address staff shortages and improve retention
- Government review: Commission an independent review to examine the causes of the rise in mental health issues and identify potential improvements in the mental health system
- Local government funding: Increase funding to local governments to support prevention and early intervention initiatives, including restoring public health grants and youth services spending to previous levels
Cost-effectiveness of early intervention
The report provides evidence on the cost-effectiveness of early mental health interventions. It states that for every £1 invested in Child and Adolescent Mental Health Services (CAMHS), there is an estimated return of £2.20 to £3.50 in benefits to individuals and an additional £1 to £1.80 in government savings. Mental Health Support Teams in schools are reported to pay for themselves within two years, with a benefit-cost ratio of 22.
Community-based treatments are reported to be significantly cheaper than inpatient care. Drop-in mental health support is found to be cost-effective for 94% of young people with long-term physical health conditions. Early intervention is also associated with increased school attendance and attainment, reduced demand for social care, fewer young people not in education, employment, or training (NEET), and increased workplace productivity.
The report concluded that early investment in children’s mental health services can reduce long-term costs and alleviate pressure on the NHS and other public services. It outlines the potential benefits of a comprehensive approach to mental health care that includes prevention, early intervention, and accessible services. The Future Minds Campaign recommended addressing these issues as a priority in public policy and funding decisions.
