With the Spring Budget Statement due tomorrow, the Association of Mental Health Providers is deeply concerned about recent governmental decisions that put the nation’s mental health and VCSE service provider sector at risk.

The proposed changes to Personal Independence Payments (PIP) will make it significantly more difficult for people with disabilities to access the support they need, pushing more people into poverty and exacerbating mental health inequalities. According to Scope, without PIP, an additional 700,000 disabled households may be forced into poverty, placing even greater strain on already overstretched mental health services.

At the same time, the increase in Employer National Insurance Contributions (NICs) from 13.8% to 15% will push many charities – already struggling to stay afloat – to the brink of closure. As part of our “The Final Straw” campaign, we estimated that the cost of the Autumn Budget changes to mental health charities delivering services was £100 million, and this is not being reflected in contracts for services commissioned by the NHS and/or Local Authorities.

Mental health charities are supporting over 8 million people across the UK but without the necessary financial means to operate, millions will be left without essential services at a time when demand – and acuity – is higher than ever. The impact of these financial pressures cannot be overstated.

Poverty, financial insecurity, and lack of access to mental health support are all well-established risk factors for worsening mental health. The government’s approach threatens to deepen health inequalities, disproportionately affecting those who are already vulnerable.

We call on the government to take immediate action in the Spring Budget to protect the mental health and well-being of the nation, and protect a sector that’s already struggling. This must include:

· Sustainable financial support for VCSE mental health services to ensure that people can access the support they need when they need it. Without additional funding, many services face an existential crisis.

· Access to vital welfare benefits, including PIP, to prevent people with mental ill-health and disabilities from being pushed further into poverty. The welfare system must be a safety net, not a barrier to survival.

· Policies to protect low-income households from the worsening cost-of-living crisis, recognising that economic insecurity is a key driver of mental ill-health.

The Spring Budget is an opportunity for the government to demonstrate its commitment to mental health and to the charity sector. Most importantly, it’s an opportunity to ensure that the people most at risk in our communities do not bear the brunt of financial austerity.

We urge the Chancellor to prioritise investment in mental health charities providing essential services and financial support mechanisms to safeguard the mental health and well-being of millions.

NB: VCSE (Voluntary, Community, Social Enterprise) provider sector and mental health charities delivering services is used interchangeably to refer to the sector that may also be known as the “third sector”.