THE Money and Mental Health Policy Institute has set out five low-cost steps the next government can take to boost financial inclusion and help people struggling with mental health problems.
Previous research by the charity has shown that one in 10 adults in the UK are behind on credit payments, and half of those people have had suicidal thoughts as a result of the cost of living crisis.
In this context, Money and Mental Health has set out five vital steps the next government can take to protect some of the people most at risk of harm and to remove barriers to financial wellbeing. These range from ensuring that everyone getting help for their mental health is also offered money advice, to reducing the distress that debt collection practices cause and protecting disability benefits for people with mental health problems.
Helen Undy, Chief Executive of the Money and Mental Health Policy Institute said: “This general election comes off the back of years of rising costs and the pandemic, which have devastated many people’s finances and mental health. After periods of economic downturn, suicide rates tend to rise – we can’t sit back and let that happen now.
“Now is the moment for decisive, pragmatic policies to protect those hit hardest over the last few years, and to remove the barriers that people with mental health problems face to financial wellbeing. This is a real opportunity for the next government to transform and even save lives.”
Money and Mental Health’s five steps for the next government to boost financial inclusion and protect mental health:
1. Ensure everyone using mental health services is offered help with money problems.
People with mental health problems are three times as likely to be in problem debt – and money issues can make it significantly harder for people to recover. The next government should:
- Ensure that everyone who receives treatment through NHS Talking Therapies is asked about their finances, and referred to money advice services if they need it. This could help an extra 27,000 people recover from mental health problems each year, cutting NHS waiting times for mental health services and saving the public purse £150 million each year
2. Protect people from the devastation caused by aggressive debt collection.
Aggressive debt collection practices by lenders and bailiffs can drive feelings of terror and despair, and even act as a trigger for suicidal thoughts. To reduce this unnecessary distress and make it easier for people to deal with money problems, the next government should:
- Place clear limits on how frequently creditors can contact people about missed bills.
- Introduce long-overdue statutory regulation for the bailiff industry – which has real teeth to clamp down on misconduct and put an end to the devastation this behaviour can cause.
3. Remove barriers to work for people with mental health problems.
One in four people who are economically inactive due to long-term sickness attribute it to mental health problems. The next government should:
- Introduce specialist mental health Work Coaches in every Job Centre to provide tailored employment advice and help people find suitable, lasting employment.
- Provide a better safety-net for people trying out work by allowing an individual’s benefits to be restarted at the same rate for up to a year after they return to work – removing a key disincentive for people to move into employment.
4. Protect disability benefits for people with mental health problems.
Disability benefits are a crucial lifeline for people with mental health problems, particularly at a time when the cost of living remains high. The next government should:
- Protect Personal Independence Payment (PIP) for people experiencing mental health problems.
- Ensure that no one has their benefits cut off while being moved from legacy benefits to Universal Credit.
5. Make financial services fair for people with mental health problems.
People with mental health problems face significant barriers to accessing financial services and products. For example, people with bipolar disorder are charged up to 27 times more for insurance than customers without a mental health problem. To boost financial inclusion, the next government should:
- Ensure that people with mental health problems don’t face unfair exclusions or premiums when taking out insurance.
- Set up a ‘Tell Us Once’ disclosure system to allow people to share a mental health diagnosis and what additional needs they have with different firms and sectors in one go.
* Source: Money and Mental Health Policy Institute