Spending Review 2025 Response
Whilst the 2025 Spending Review shows some progress and a focus on creating opportunities, it did not reassure us that mental health has been given equal consideration as physical health. The continued lack of parity between these two pillars of health care perpetuates systemic inequalities and undermines national wellbeing.
The plan to increase NHS funding is welcome, but there was no clear indication of how much will go to mental health care and support or how this funding will be allocated. With over one million people currently waiting for mental health care and support, it is deeply concerning that physical health appears to remain the priority. This imbalance leaves mental health services underfunded, overburdened, and unable to meet growing demand.
The announcement of a new Fair Pay Agreement for care and support workers is a positive step, recognising the essential role they play in our health and social care system. However, like mental health services, there was no mention of ringfenced funding for this. Fair pay for care workers is long overdue and crucial to addressing workforce shortages, but without sustainable investment, already overstretched services will face even greater pressures, exacerbating existing challenges in service delivery and access.
We welcome the planned expansion of mental health support teams in schools and investment in crisis care as steps in the right direction. However, support in schools is no substitute for a properly resourced, cross-government mental health strategy. To achieve meaningful change, we need a comprehensive approach that addresses root causes such as poverty, housing insecurity, and adverse childhood experiences, while also tackling the unacceptably long waits for care and treatment.
Similarly, while plans to improve housing, reduce poverty, and respond to the cost-of-living crisis are positive, they lack a targeted focus on supported housing. Without a commitment to develop and sustain supported housing, people with mental health needs will continue to face barriers to independent living, perpetuating cycles of dependency and hardship. We are also alarmed by the proposals to reduce eligibility for Personal Independence Payments (PIP). These cuts risk pushing vulnerable people further into poverty, intensifying strain on already stretched services, and undermining efforts to create a fair and inclusive society.
It is encouraging to see the Voluntary, Community, and Social Enterprise (VCSE) sector acknowledged in the Spending Review through initiatives like preventative community support and the Social Impact Investment vehicle. VCSE organisations are critical to reaching marginalised and underserved populations, often acting as lifelines for communities disproportionately affected by social and economic inequalities. Yet, the reality is that many VCSE organisations, particularly those supporting disabled people and individuals with mental health needs, are operating under immense financial strain. Without long-term, secure funding, these essential organisations risk closure, which would leave significant gaps in care and support for millions of people.
The VCSE mental health sector plays a vital role in supporting NHS services in every community, helping to build a prevention-focused mental health system that can alleviate pressures on statutory services. However, without sustained investment in both mental health services and the broader VCSE sector, these efforts cannot succeed. A health system that prioritises prevention and early intervention is only possible when mental health achieves true parity with physical health in both policy and funding.
We urge the government to commit to long-term, cross-sector investment that recognises mental health and social care as fundamental components of our health infrastructure. This must include ringfenced funding for mental health services, fair pay for care and support workers, sustained investment in supported housing, and a cross-government strategy to address the social determinants of mental health. Mental health is not just a healthcare issue.
Whilst this Spending Review takes some important steps, it falls short of the systemic, bold, and inclusive approach needed to address the urgent challenges facing mental health and social care. We call on the government to prioritise mental health as a matter of equity, sustainability, and national importance.