Charity calls for action to support people in mental health care through the cost of living crisis

People experiencing mental health crises are being exposed to severe financial harm during the cost of living crisis, the Money and Mental Health Policy Institute charity has warned.

The new research, published in partnership with the leading mental health charity Mind, and funded by Barclays, examined the financial experiences of people receiving care from secondary mental health services, such as psychiatric hospitals and Community Mental Health Teams. In the survey of almost 200 people, the Institute found that:

• 68% reported they face a significant drop in income while getting treatment – leaving them struggling to cover essentials and bills while acutely unwell.
• 58% of respondents were not offered any support with their finances while under the care of secondary mental health services.
• 72% said they struggled to pay for food or heating.
• 55% missed a payment for an essential bill, such as a mortgage, rent, energy, or council tax.
• 60% said they wouldn’t have been able to take in information about managing their finances when they were receiving care.

Data also showed that the annual income of people with severe mental health problems is around ￡6,500 lower than the general average due to factors related to the capacity to work and the persistently low and biting benefit rate. Additionally, the researcher also identified the factors contributing to widespread feelings in patients of lack of support:

• 81% of respondents said their crisis or relapse prevention plans did not mention finance.
• 58% were not offered any support with their finances while under the care of secondary mental health services.

Why aren’t secondary mental health services telling patients about the Mental Health Breathing Space scheme?

It was also found that existing financial support measures such as the Mental Health Breathing Space scheme, the Government’s debt relief scheme for people receiving mental health support, were not widely known or utilised. While the Government predicted that 27,500 people would enter the scheme in 2021-22, official figures show that only 696 people did so in the months after it was launched in May 2021.

Consequently, Money and Mental Health are calling on policymakers and healthcare services to use every measure possible to prevent financial harm for people at an intense moment of vulnerability due to the current looming cost of living crisis. Key recommendations from the Institute include:

• The automatic offer of the Mental Health Breathing Space scheme to people detained in hospitals due to their mental health.
• Ensure that financial concerns are embedded in Care and Treatment plans, physical checks, and other support plans.
• The Money and Pensions Service and Health Education England should fund and deliver a money and mental health training module to support professionals in services to ask about financial difficulties more regularly.

Echoing these recommendations, Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said:

“When you're dealing with serious mental health problems, managing money and keeping up with bills can be an impossible task. Secondary mental health services can play a critical role in helping people in this position avoid serious financial harm, but too often that opportunity is being missed.”

"Part of the answer is making sure that more people can access existing support measures like the Breathing Space debt respite scheme, which could make a huge difference in helping them avoid financial crisis. But we also want to see healthcare professionals routinely asking people with mental health problems about their finances as part of their Care and Treatment plans. The upcoming reform of the Mental Health Act offers a perfect opportunity to embed this as standard practice and to ensure that fewer people have to face serious financial worries when also dealing with acute mental health problems."