Addressing the mental health of communities across England could lead to a rise in economic prosperity. This is according to a new paper funded and led by academics from The Productivity Institute (TPI), the University of Manchester, Health Equity North (HEN), Newcastle University, and the National Institute for Health and Care Research (NIHR) Applied Research Collaboration Greater Manchester (ARC-GM).
Researchers conducted a study of nearly 7,000 small areas across England between 2011 and 2019 and found a “positive association” between improving mental health and increasing household income. They examined how Gross Disposable Household Income (GDHI) was associated with variations in the Small Area Mental Health Index (SAMHI), an index which combines local data on mental health-related factors such as hospital visits, antidepressant prescription, prevalence of depression and uptake of benefits relating to mental illness.
These findings add weight to the argument that investing in mental health brings economic benefits to individuals and their communities. This is particularly relevant for areas in the North East and North West of England, which rank among the lowest regions in the country for both mental health and household income.
Findings of the study
• Improving mental health by one point on this index is linked to a 1.9% rise in gross disposable household income a year later.
• The association between better mental health and improved economic performance is strongest in the North East, suggesting the region has the most to gain economically from boosting mental health provision. Household incomes could increase by 3.2% in the North East and 2.4% in the North West, higher than the national average and considerably higher than in London.
• In the North East, this equates to around an extra £735 per person per year, an extra £551 per person per year in the North West, and an extra £482 per person per year in Yorkshire and the Humber.
• The mean gross disposable household income per capita over the 2011-2019 period was £22,959 across England. However, it was significant higher in London (£29,346) and the South East (£25,300) and significantly lower in the North East (£19,353), Yorkshire and the Humber (£19,813) and the North West (£20,561).
• The North East consistently registered the worst levels of mental health between 2011 and 2019, followed by the North West. London consistently ranked highest. However, mental health has declined in all regions during this period.
Doriane Mignon, lead author and Research Fellow in Population Health, Health Services Research and Primary Care at the University of Manchester, says: “While we have not established a definitive causal link, there is a clear positive association between improvements in population mental health and the subsequent household income per capita. This is particularly true in regions such as the North East and North West, which have traditionally suffered from regional inequalities in both income and mental health.
“As the British Government explores approaches that will improve well-being, productivity and growth, it is important that it considers the potential impact of strategic investment in mental health support on the lives of its citizens and communities.”
