Cutting lengthy NHS waiting times for mental health treatment in England could save the UK economy up to £1 billion a year, while also improving health outcomes and employment rates, according to new research.
A study by Lancaster University has found that faster access to mental health services can significantly reduce unemployment caused by delayed care.
The findings suggest that reducing waiting times by just one month could prevent thousands from losing their jobs, boosting productivity and easing pressure on public finances.
The research, which will appear in the Review of Economics and Statistics, examined data from the Netherlands between 2012 and 2019.
It revealed that a one-month delay in mental health treatment led to a two percent rise in job losses among patients. Applying this model to the UK, where mental health conditions are similarly widespread and the population is larger, the impact could be far greater.
An estimated 300,000 people in the UK could benefit from quicker treatment annually. With improved access, the government could save approximately £1 billion each year through higher income tax contributions and lower spending on unemployment benefits.
The UK faces significant challenges in its mental health services. More than 3.8 million people in England were in contact with NHS mental health, learning disability, and autism services in 2023–24, a sharp increase from pre-pandemic levels. Despite government pledges to cut backlogs and improve healthcare access, mental health services are often left out of national recovery plans.
Research from the charity Rethink Mental Illness shows that individuals are eight times more likely to wait over 18 months for mental health support than for physical health treatment. This extended delay not only worsens individual outcomes but also reduces the likelihood of patients remaining in employment.
The government has committed to investing £680 million in mental health services this year. This includes hiring more professionals, increasing access to talking therapies, and expanding early intervention programmes. However, experts say a broader economic case must be recognised: investing in mental health does not only improve lives but also generates long-term savings for the public purse.
The study estimates that reducing wait times in the Netherlands would require around 100 additional mental health professionals, costing about €10 million annually. For the UK, four times that workforce would be needed due to its larger population, but the financial benefits far outweigh the investment.
As the UK aims to grow the economy and reduce benefit dependency, improving mental health support could be a vital strategy. Faster treatment would enable more people to return to work, reduce long-term illness, and support public sector efficiency.
While NHS reforms are underway, there is growing pressure for mental health to be placed at the centre of recovery plans. The findings from this study reinforce the urgent need for systemic change in how the UK handles mental health care access.
