Fair Fee Rates: A Vital Step for Sustainable Mental Health Services
The Association of Mental Health Providers has developed a template letter for our members to request a fair fee rate uplift for mental health services in 2025/26. This work is tied to our #TheFinalStraw campaign, which highlights the urgent need for systemic change to prevent the collapse of vital mental health services due to unsustainable funding.
With rising financial pressures – including a 6.7% increase in the National Living Wage and higher National Insurance contributions – many providers are at breaking point. Our letter template supports formal requests for fee adjustments, referencing Change of Law clauses and reinforcing Local Authorities’ obligations under the Care Act 2014.
We know that fair and sustainable fee rates are needed to:
- Ensure high-quality services that meet growing local demand.
- Maintain financial resilience amid ongoing uncertainty.
- Prevent mental health service providers from reaching the final straw whereby their services become unsustainable.
This initiative aligns closely with our papers on:
- Commissioning – highlighting key considerations for commissioners and providers to ensure the long-term effectiveness of the VCSE sector in the health and care system.
- Charity Reserves – emphasising the need for financial resilience and strategic approaches amid ongoing uncertainty.
#TheFinalStraw campaign amplifies the call for urgent action to support mental health providers. Without fair fee rate uplifts, many services are at risk of collapse, impacting those who rely on them most.
We urge mental health service providers to:
- Download and personalise the template letter to engage with Local Authority commissioners.
- Join the #TheFinalStraw campaign to advocate for systemic change by engaging with and sharing our key social media messages.
