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Part of Boris Johnson led Britain during the Covid-19 pandemic and the UK voters voted to leave the EU.

How could the increased demand for NHS mental health services affect Rachel Reeves?

Likely What happens if… A possibility worth considering, not a forecast.

Increased mental health demand could strain government budget The UCL study found that systemic shocks, including the first Covid lockdown and Brexit, led to a serious and lasting deterioration in the UK population’s mental health. This deterioration has resulted in a huge rise in demand for care, with the total number of people in England in contact with NHS mental health services almost doubling from 2.64 million in 2016-17 to 4.13 million in 2024-25. Because mental ill-health already costs the UK £300bn a year, this sustained increase in demand places significant and growing fiscal pressure on the government's budget, which Rachel Reeves oversees.

Reported by 1 independent outlet Written Yesterday
Effect
Strong negative
How direct
2 steps, 1 inferred by Brind
When
Over the long term
The story
No new developments lately

How it reaches Rachel Reeves

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The facts so far

As reported. Each one links to where it comes from.

  • Mental ill-health costs the UK £300bn a year.theguardian.com
  • The total number of people in England in contact with NHS mental health services almost doubled from 2.64 million in 2016-17 to 4.13 million in 2024-25.theguardian.com
  • The number of new referrals the NHS receives every month for mental ill-health has jumped from 360,000 in April 2022 to 530,000 in July 2026 – a jump of 47%.theguardian.com
  • The first Covid lockdown, when Boris Johnson told people to “stay at home”, equated to about 900,000 more people in total visiting a family doctor because they had developed symptoms of depression.theguardian.com

Why it matters

The scale of the mental health crisis is immense, representing a massive and sustained financial drain on the UK economy. With mental ill-health costing £300bn a year, the increased demand for NHS services requires continuous and substantial public funding. This places a major challenge on the government's ability to manage its budget and allocate resources across other critical areas.

This crisis is not isolated; the research indicates that the distress is the effect of multiple overlapping 'systemic shocks,' including Brexit and the mini-budget. This suggests that the financial pressure is structural, stemming from long-term societal instability and uncertainty, rather than being a temporary spike in demand.

What we don't know yet

  • What specific government interventions will be implemented to manage the rising demand for NHS mental health services?
  • How will the government balance the rising costs of mental health care against other fiscal priorities?

What would change this answer

The government announces a major new funding package for NHS mental health services.This would mitigate the immediate fiscal pressure on the government's budget, potentially stabilizing the financial outlook.
Further economic or geopolitical shocks occur.This could exacerbate the existing psychological distress, leading to an even greater and more rapid increase in NHS demand and associated costs.

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  • About Angela Rayner

    Given the structural financial pressure on the budget, how might Angela Rayner's political priorities influence the government's approach to funding mental health services?

    Explore Angela Rayner

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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.