The Conservative Party has announced a £730 million investment aimed at enhancing NHS mental health services, with the objective of curbing welfare costs and reducing the number of individuals unable to work due to health reasons.
This initiative is designed to alleviate the economic burden of £12 billion annually by enabling an additional 500,000 working-age individuals currently dependent on benefits to enter the workforce. According to the Office for National Statistics (ONS), the number of people inactive due to health reasons has skyrocketed by 33% to 2.8 million since the pandemic.
Prime Minister Rishi Sunak has pinpointed addressing this so-called ‘sick note culture’ as a key element of his leadership. In response, Labour has accused Mr. Sunak of attempting to ‘disguise the fact that he has caused a spiralling benefits bill.’ Meanwhile, Mr. Sunak emphasised the moral imperative of welfare reform, underscoring that work provides dignity, purpose, and hope. He stated, ‘That’s why we have announced a significant increase in mental health provision, as well as changes to ensure those who can work, do work.’
The Conservative plan encompasses several reforms initially proposed by Mr. Sunak’s administration. These include revising disability benefits for those most in need and tightening work capability assessment criteria. Notably, the proposal aims to shift the responsibility for issuing sick notes from GPs to specialist work and health professionals.
Building on the announcement to support an additional 384,000 people through talking therapies, as detailed in the 2023 Autumn Statement, the Conservatives assert that the new funding will enable 576,000 individuals to access mental health support by 2029, thereby helping more people remain in work. The annual cost of £730 million is expected to be offset by the £12 billion in savings anticipated by 2030.
This package aims to prevent the benefits cost for working-age individuals with health conditions from escalating from £60 billion to £90 billion by the end of the next parliament. However, the independent Institute for Fiscal Studies (IFS) has expressed scepticism, with Associate Director Tom Walters commenting that achieving an additional £12 billion in savings ‘looks difficult to the extreme.’ He noted that historical data shows such reductions in spending are often challenging to achieve.
A Labour spokesperson criticised the announcement as a desperate attempt by Mr. Sunak to mask a spiralling benefits bill, describing the pledges as ‘reheated’ and the promises as ‘vague.’ The Liberal Democrats echoed these sentiments, pointing to the Conservative government’s role in the NHS backlog and suggesting that shifting the goalposts would not genuinely address the issue. The IFS has also warned that the next government might need to reduce the scope of state provisions or raise taxes to sustain departmental funding levels. Both the Conservatives and Labour have committed to not increasing income tax, National Insurance, or VAT rates.
Addressing concerns about funding these commitments, Work and Pensions Secretary Mel Stride mentioned on the BBC’s ‘Sunday With Laura Kuenssberg’ programme that £6 billion could be raised by cracking down on tax avoidance. When questioned why this had not been accomplished by previous Conservative administrations, Mr. Stride replied, ‘We have been doing it and there’s more we can do.’
The proposed £730 million investment by the Conservative Party aims to reform the NHS mental health services and reduce welfare costs. However, the ambitious savings target faces scepticism from economic experts and political adversaries, raising questions about the feasibility and effectiveness of these reforms.
