Association of Mental Health Providers

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The Impact of the Cost-of-Living Crisis on Mental Health

Over the past decade, austerity measures have inflicted profound economic hardship on communities and individuals, exacerbating systemic inequalities and leading to the closure of crucial support services in health, education, and community engagement. This has triggered a sharp rise in poverty and an increase in mental health issues across society. The COVID-19 pandemic has further compounded these financial strains, disproportionately affecting marginalised and vulnerable groups throughout the United Kingdom. The ongoing economic crisis has not only undermined the wellbeing of the most at-risk populations, but has also deteriorated living and working conditions for many, pushing an alarming number into poverty and escalating mental health challenges.

Evidence demonstrates that the cost-of-living crisis plays a role in worsening existing mental health challenges, provoking mental ill health amongst individuals and intensifying structural inequalities faced by racialised and marginalised communities.

This briefing will explore:

  • The impact the cost-of-living crisis has had on people’s mental health experiences and outcomes
  • The impact the cost-of-living crisis has had within the VCSE sector
  • Case studies demonstrating the significance of the cost-of-living crisis and interventions put in place to support communities