Lancaster University research links faster access to treatment with improved employment outcomes and major savings to the public purse
Efforts to reduce mental health treatment waiting times across England could save the UK government as much as £1 billion a year, according to new academic research.
A study by Professor Roger Prudon of Lancaster University, soon to be published in the Review of Economics and Statistics, concludes that earlier intervention for mental health patients can lead to better health, improved job retention, and significant economic benefits.
Drawing on data from the Netherlands between 2012 and 2019, Prudon found that a one-month delay in starting treatment increased the risk of job loss by 2%. Conversely, cutting delays by a month could help around 80,000 people access care sooner each year and generate savings of more than €300 million (£253 million) in unemployment-related costs.
Given similar treatment models and prevalence of mental health conditions, Prudon applied the findings to the UK, where the population is significantly larger. He estimates that reducing waiting times by a month could enable 300,000 more people to access timely treatment annually, delivering savings of approximately £1 billion through increased income tax revenue and lower unemployment benefits.
“Although NHS data linking mental health treatment and employment outcomes is limited, the healthcare systems in the UK and the Netherlands face similar pressures—rising demand and growing treatment backlogs,” said Prudon.
The UK government has been focused on cutting NHS waiting lists, expanding elective care access and establishing seven-day health hubs. However, mental health services have not been explicitly included in these plans.
Charities such as Rethink Mental Illness warn that patients face far longer waits for mental health care than for physical health treatment. According to their research, individuals are up to eight times more likely to wait more than 18 months for mental health services.
Official NHS figures show that approximately 3.8 million people in England accessed mental health, learning disability, or autism services in 2023–24—an increase of nearly 40% from pre-pandemic levels.
In the Netherlands, about 1 million people receive mental health care annually. Prudon estimated that reducing waiting times there by one month would require about 100 additional psychiatrists or psychologists at an annual cost of €10 million (£8.4 million). For the UK, with a population four times the size, he suggests that hiring 400 additional professionals would achieve similar gains—at a cost still vastly outweighed by potential savings.
“The problem of long mental health waits is not new,” Prudon noted. “Governments often hesitate to invest more, citing budget limitations. But the economic case is clear: spending on mental health treatment can save the country considerable sums in the long run by keeping more people in work.”
He added: “This isn’t just a health issue—it’s an economic one. Failing to address it means we’re losing money. Investment in mental health services is not a cost but a long-term saving.”
Responding to the study, a government spokesperson acknowledged systemic issues in mental health services but pointed to recent reforms.
“This government inherited a broken mental health system, with too many people on waiting lists and unable to work. Our shift toward prevention, combined with welfare reforms, will help people return to the workforce and support economic growth,” the spokesperson said.
They added: “Through our Plan for Change, we are transforming mental health services with an additional £680 million investment this year, more staff, expanded talking therapies, and targeted efforts to reduce waiting times.”
