UK companies are witnessing a surge in demand for employee-funded mental health services, indicating that the private sector is increasingly shouldering the cost of a mental health crisis, which the government is struggling to address.
Health Assured, a provider of employee assistance programs for over 70,000 companies, is projecting a 16% increase in wellbeing referrals for the next year. To meet this demand, the company has increased its clinical experts’ workforce by 76% over the past three years, offering services such as counseling and referrals to employees facing mental health challenges.
The growing demand for mental health services reflects a concerning trend in the UK, with a record 1.35 million people out of the labor market due to long-term mental health issues, including depression, anxiety, and nervous disorders—a 40% increase since 2019.
The UK government is concerned about the rise in long-term sickness among working-age individuals, which is straining the National Health Service (NHS), driving up costs, and contributing to labor shortages and wage inflation. Almost 900,000 people are economically inactive due to mental illness, a 32% increase since 2019, potentially costing the Treasury £15 billion ($18.7 billion) in lost taxes and higher welfare.
As the NHS struggles to cope with these demands, companies are increasingly covering the costs when their employees encounter mental health issues. This has placed a strain on Employee Assistance Program (EAP) providers like Health Assured, leading to an increase in trauma-trained practitioners to handle demand.
The UK government is exploring reforms to reduce the number of individuals declared unfit for work due to mental health issues. Employers are also encouraged to expand their occupational health services and allow mentally ill staff to work from home more.
EAPs have become a crucial part of the benefits offered by companies, with an average cost of £14 per employee per year in 2020, often providing a return on investment. Meanwhile, NHS mental health treatments often involve long waiting times, with more than 66% of patients waiting up to 18 weeks for treatment in June, missing the service’s target of serving 92% within that timeframe.
As a result of these challenges, Health Assured is seeing more referrals from doctors and has increased salaries to attract additional staff. Job advertisements for part-time counseling and therapy positions have also surged, reflecting the lasting mental toll of the pandemic and changing attitudes toward mental health in the workplace.
In addition, charities like the Retail Trust, which supports over 200 UK retailers, have experienced a significant increase in counseling sessions, indicating the growing demand for mental health support among employees.
The rising cost of living, abusive customers, and the financial and mental strains resulting from the pandemic have all contributed to the growing need for mental health services in the workplace.
