Our response to the Autumn 2024 Budget

Location: United Kingdom

Here at the Mental Health Foundation, we focus on the prevention of mental health problems, and call for national policy measures which will contribute to this. Parts of the budget that are particularly notable from this perspective include:

  • Mental ill-health prevention measures
  • The increase to the minimum wage
  • The ‘fair repayment rate’ for those in receipt of benefits
  • Further plans to reform the benefits system
  • Plans to increase the ‘Bus Fare cap’ to £3

We've responded to those specific topics, as well as the budget as a whole. 

Commenting on the announcements Mark Rowland, our Chief Executive, said

On the budget as a whole:

“Today’s historic budget has delivered some really welcome measures but there remain a number of worrying contradictions in the government’s approach. We particularly support the focus on tackling the root causes of mental health problems. This budget could prove to be a first step towards improving the public health of the country, but we’re going to need further action before that becomes the reality.

“We’re delighted to see support for people on the lowest incomes, such as the increase to benefits in line with inflation and the increases to the minimum wage, but the new government needs to be more ambitious over the next few years. We need to see a funded plan to improve the public’s mental health, tackle waiting lists, improve productivity and, most importantly, reduce the human toll of mental health problems in the country. 

“We hope over the next year to see the government considering truly transformational policies, such as the restoration of the public health grant, which has been cut deeply over recent years, introduction of an Essentials Guarantee on benefits, abolition of the ‘no recourse to public funds’ policy, which hurts asylum seekers’ mental health, and the removal of the two-child benefit cap.”

On mental-ill health prevention measures:

“The Prime Minister, the Chancellor and the Health Secretary have all said that prevention of ill-health needs to be at the heart of the NHS’s recovery. If that’s the case, then they need to put the funding in place to realistically achieve this. There has been no announcement today of specific funding for prevention of poor mental health, but we were pleased to see the Chancellor raise the importance of prevention at the dispatch box.

“The Health Secretary is due to be announcing further details of the government’s plan for improving the health service in the coming weeks. As part of this, they must commit to transformative prevention measures, such as the restoration of the Public Health Grant and suicide prevention funding, as well as increasing support for community and voluntary organisations who work with people at risk of experiencing poor mental health. This is a vital opportunity to put prevention at the heart of the NHS; it must be seized.”

On the increase to the minimum wage:

“We’re pleased the Chancellor has announced an increase in the minimum wage, which could make a very real difference to those in the lowest paid work, and is a helpful step towards addressing in-work poverty. One of the best ways of reducing the prevalence of mental health problems is ensuring that everyone has an adequate income. Financial distress and poor mental health form a vicious cycle, and far too many people working incredibly hard have to make impossible choices between heating and eating. In-work poverty can lead people to falling out of the workforce altogether, as their mental health deteriorates as a result of the constant financial distress they face. 

“The focus on increasing the minimum wage of young people could be genuinely transformative for the lives of many people across the country. With young people on the lowest incomes being among the highest risk groups for mental health problems, making sure that their work pays enough to live is essential.” 

On the “Fair Repayment Rate” measures for people in receipt of benefits:

“This is a welcome change to the way the government claims back payments from those on the lowest incomes. Debt and mental health can form a vicious cycle, with half of all adults with a debt problem also living with mental ill-health. Unaffordable benefits deductions can leave people struggling to afford the basics, leading to further problem debt and worsening mental health problems. 

“However, this will not deliver the kind of transformative change we need to lift millions of children out of poverty and guarantee everyone receiving benefits can afford the essentials like food and a warm home. Much more needs to be done to support people on lower incomes.”

On further plans to reform the benefit system:

“The Chancellor made vague but worrying suggestions today about the government’s plans to reform the benefits system to encourage more people into work. If today’s hints towards reforming the benefits system involve carrying forward the previous government's plans for reforming the Work Capability Assessment, this would be deeply alarming and increase the distress of millions of people with a mental health problem in receipt of benefits, setting back their recoveries. 

“While more needs to be done to help those who are out of work with poor mental health back into the workforce, and while the assessment system is in dire need of reform, the previous government’s proposals are counterproductive and should not be replicated.  Any reform should instead be focused on supporting people who have fallen out of work due to a mental health problem to recover and to find a workplace that works for them, rather than forcing unwell people back into work before they are ready.”

On plans to increase the ‘Bus Fare cap’ to £3:

“The decision to not maintain the £2 cap on bus fares beyond the end of 2024 will be detrimental to the mental health of many on the lowest incomes. A large proportion of people who are at the highest risk of poor mental health, such as those in receipt of benefits or in low paid work, young people, and asylum seekers, rely on public transportation for socialising with friends and accessing nature, sport, and leisure. It’s these groups who will be most affected by increasing transport costs, and could find themselves unable to do the things which prevent them experiencing poor mental health in the first place.

“We’re particularly concerned that the Department for Transport’s evaluation of this scheme may not have taken into consideration the potential impacts on those most at risk of mental health problems, as well as the preventative health benefits policies like this deliver. We would urge the government to immediately publish their evaluation of the policy for further scrutiny.”