New briefing exposes devastating impact of cost-of-living crisis on mental health of nation and VCSE services

7 August 2024:  

Over the last decade, austerity measures inflicted intense hardship on individuals and communities in the UK, worsening systematic inequalities, and leading to the closure of critical support services. The Association of Mental Health Providers, the national voice for mental health charities providing services in England and Wales, is calling for leaders to work with the Voluntary, Community and Social Enterprise (VCSE) sector to tackle the root causes of poverty, as our new briefing reveals the devastating impact of the cost-of-living crisis on people’s mental health. 

The cost-of-living crisis has placed a significant strain on people with pre-existing mental health problems and has had a disproportionate effect on minoritised communities. Data published by People Like Us, in 2022, found that “56% of Black, Asian, and ethnic minority workers disclosed feeling despair about the increased cost-of-living.” Research findings from the British Association for Counselling and Psychotherapy also showed that “66% of therapists observed that the worries about the cost-of-living were contributing to a decline in their clients’ mental wellbeing.” 

The crisis has placed a heavier toll on the VCSE sector with research from Pro Bono Economics and Nottingham Trent University revealing that, in October 2023, “more than 55% of small, medium, and large charities shared they were depending on charity reserves to meet their current operating costs.” 

 Kathy Roberts, Chief Executive of The Association, says: 

“The detrimental impact of the cost-of-living crisis on people who rely on mental health charities (VCSE sector) providing services and the sector itself, is profound. Insights from our members has suggested that many VCSE organisations are in survival mode, working under the threat of closure, staff wellbeing is being compromised with increased demand for services, and many are faced with a lack of funding and resources. 

We welcome the new government’s plans to address the crisis and the significant concerns surrounding the nation’s mental health.  

We would urge the government to support and invest in the VCSE mental health provider sector to address the root causes of poverty, socio-economic inequalities, and the rising cost-of-living, to protect the population and the younger generations’ mental health and wellbeing.” 

– Ends – 

 Note to editors 

About the Association of Mental Health Providers 

Association of Mental Health Providers is the national voice of mental health charities providing mental health and wellbeing services. 

It represents: 

• 300 plus members, 

• delivering over 3,000 services locally, regionally and nationally, 

• reaching 8 million+ people with poor mental health and illness in the community. This equates to 1 in 8 people receiving support from a voluntary and community mental health provider. 

• Total membership turnover (2021/22 FY) £5.2bn 

The Association can provide insight, case studies, research and expertise on all aspects of mental health. It also offers opinion and thought leadership articles on a range of mental health/mental health service provision-related topics. 

For more information, visit www.amhp.org.uk  

Contact: Ella Dunthorne, Email: ella@amhp.org.uk  

The Association support, influence, advise, and inform, and are deeply committed to discussing and reporting stories relating to mental health responsibly, helpfully, and in a way that considers the needs of the most vulnerable members of the population. Please read the media charter here. 

Through its Lived Experience engagement, The Association is working with, being guided by, and learning from people with experience of poor mental health and illness, and use of services.  

The Association can also be found on LinkedIn, X, Threads, Instagram and Facebook.