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Mental health costs set to double as dementia increases

28/05/2008

The cost of mental health services are set to more than double in the next 20 years, health experts have warned.

A year-long study published by the King's Fund says the prevalence of most mental disorders is likely to remain stable during the next two decades.

But it claims that there could be a huge increase in dementia by almost two-thirds due to an ageing population.

As such the report predicts the bill for mental health services is expected to grow from £22.5 billion to £47 billion.

The Paying the Price study also estimates that mental illness in England cost £50 billion last year.

Almost half, £22.5 billion, represents money spent on direct NHS and social care services to support people with mental disorders.

More than half, £26.1 billion, represents the estimated cost to the economy of earnings lost because of the thousands of people unable to work due to their mental illness.

The report suggests a number of ways to reduce the prevalence of mental health problems and to help thousands of people back to productive work.

Professor Martin Knapp, co-author of the report, said: "We found that paying for more people to be treated would create net savings as reductions in lost employment costs would outweigh treatment costs.

"With a third of adults with depression and a half with anxiety disorders not in touch with services there is significant potential to treat more people with those illnesses and make savings because of the boost to the workforce.

He added: "The government, the NHS, social services and employers need to extend efforts to help people with mental health needs who are of working age but not in employment to get back to work."

King's Fund chief executive Niall Dickson commented: "The fact that we are living longer is a cause for celebration but it will mean that the health and social care systems will have to cope with a dramatic increase in the number of people suffering from dementia.

"Unless there is a major breakthrough in drugs to arrest the course of this illness, there will be a great need for extra care and support, some of it quite intense.

"The projections in this report should help policy-makers and those responsible for local services plan for future demand."