The government has weakened protections for mental health funding in a move that a group of major mental health organisations say risks mental health services missing out on a fair share of additional NHS investment announced in the Spending Review.
Mental Health Investment Standard (MHIS) introduced in 2016 ensured that Integrated Care Boards (ICBs) increase spending on mental health services at least in line with the growth in their total programme (healthcare) funding. The redefined MHIS will now only require ICBs to keep mental health funding in line with inflation.
Secretary of State for Health and Social Care Wes Streeting had previously committed to keeping the MHIS for the 2025/26 financial year during an appearance at the Health and Social Care Select Committee in December 2024 and it was included in the 2025/26 NHS Operational Planning Guidance.
The move comes after it emerged earlier this year that mental health funding had fallen as a percentage of overall health spending. The share of spend on mental health services against NHS baselines fell from 9.0% in 2023/24 to 8.78% in 2024/25 and is forecast to fall again this year. Under current legislation, the Secretary of State has annually to report on the level of mental health spending to Parliament.
Currently mental ill-health costs England around £300bn a year and mental illness accounts for over 20% of the disease burden yet receives less than 9% of NHS expenditure.
It also comes after the Care Quality Commission recently warned of mounting pressures across mental health services and “since the pandemic, there has been a steady increase in the number of people referred to mental health services – with many people waiting too long to get the help they need”.
The organisations – Centre for Mental Health, Mental Health Foundation, Mind, Rethink Mental Illness, and Royal College of Psychiatrists – said in a joint statement:
“People with mental illness are being failed by a system that can’t keep up. With 1.8 million people waiting for treatment, high suicide rates and rising hospital admissions, mental health services are at breaking point.
“Funding mechanisms alone won’t fix this. Investment must reach the frontline and deliver better outcomes for the people who need help most. That’s why these changes to the MHIS are so concerning. For years it has safeguarded mental health funding, corrected historic underinvestment and kept mental health on the NHS agenda despite competing pressures.
“The government recognises the impact of poor mental health, particularly on young people and the economy. But without existing funding protections, it must now prove it is serious about tackling this crisis. We urge ministers to bring forward a plan to strengthen mental health services. We stand ready to help deliver it — bringing government, the voluntary sector, frontline services and clinical leaders together so people get the right treatment at the right time and fewer lives are blighted by poor mental health.”
