The Conservative Party has pledged nearly £730 million to support mental health treatment in England, aiming to tackle rising social care costs if it wins the next general election.
This initiative is designed to reduce the economic burden of £12 billion a year by facilitating employment for an additional 500,000 working-age individuals currently on benefits.
According to the Office for National Statistics (ONS), the number of people who are inactive for health reasons has risen by 33% to 2.8 million since the onset of the pandemic. Prime Minister Rishi Sunak has identified tackling the so-called “sick note culture” as a cornerstone of his leadership.
In response, Labor accused Mr Sunak of trying to “hide the fact that he caused the soaring benefits bill”. At the same time, Mr Sunak stressed the moral imperative of reforming the social care system, highlighting that work provides dignity, purpose and hope. “That's why we've announced a significant increase in mental health provision, as well as changes to ensure those who can work do their job,” he said.
The Conservatives' plan includes many of the reforms initially proposed by the Sunak administration, such as reviewing disability benefits for those most in need and tightening criteria for assessing work capacity. It is worth noting that the proposal would shift the responsibility for issuing sick notes from general doctors to specialist work and health professionals.
Building on the announcement to support an additional 384,000 people through talking therapies, as detailed in the Autumn 2023 Statement, the Conservatives confirm that the new funding will enable 576,000 people to access mental health support by 2029, thus helping more people stay in work.
The annual cost of £730 million is expected to be offset by £12 billion in projected savings by 2030. This package aims to prevent the cost of benefits for working-age individuals with health conditions from rising from £60 billion to £90 billion by 2030. End of next Parliament.
However, the independent Institute for Fiscal Studies (IFS) expressed doubts, with associate director Tom Walters commenting that achieving an additional £12bn in savings “looks extremely difficult”. He noted that history shows that such spending cuts are often difficult to implement.
A Labor spokesman criticized the announcement as a desperate attempt by Sunak to hide his spiraling benefits bill, describing pledges as “reheated” and promises as “vague”. The Liberal Democrats echoed these sentiments, pointing to the role the Conservative government plays in the NHS's backlog, and suggesting that changing the targets would not truly address the issue.
The IFS also warned that the next government may need to reduce the scope of state allocations or increase taxes to maintain departmental funding levels. Both the Conservatives and Labor have committed not to increase rates of income tax, National Insurance or VAT.
Addressing concerns about funding these liabilities, Work and Pensions Secretary Mel Stride said on the BBC's Sunday with Laura Kuenssberg program that £6 billion could be raised by cracking down on tax evasion. When asked why this had not been achieved by previous Conservative administrations, Mr Stride replied: “We have been doing it, and there is more we can do.”
