Lack of adequate social security support is a key driver of ‘mental health income gap’ of more than £8,000

Final Mental Health and Income Commission report calls for immediate measures and systemic reforms including increasing SSP, suspending conditionality and longer, more generous ESA awards

A lack of adequate social security support is a key driver of a ‘mental health income gap’ of more than £8,000, according to the Money and Mental Health Policy Institute (MMHPI).

In Closing the Gap - the final report from the MMHPI's Mental Health and Income Commission - the charity reflects on the problems faced by people with mental health problems in the labour market, the benefits system, and interactions with other organisations, and how this drives income inequality for the group.

Key findings drawn from new research carried out for the report and from earlier reports from the Commission including Mind the income gap and Help Along the Way, include that -

• the typical income for people with common mental health conditions such as anxiety or depression is £8,400 less than for the rest of the population;
• since the Covid-19 outbreak started, three in ten working-age people with mental health problems have experienced an income drop due to furlough, which for many has meant cutting back on essentials such as food and heating;
• barriers to employment and job progression - ranging from inflexible working practices to discrimination - are a major contributory factor to the income gap; and
• the lack of adequate support through the social security system for those who need time off work due to mental illness, or who are unable to work at all, increases the income gap

While the Commission welcomes the flexibilities introduced in response to the pandemic for how employment is carried out and how the DWP operates, it highlights that, despite these changes, the scale and severity of the problems highlighted in its report present a clear case for change.

As a result, the Commission makes recommendations for immediate action and for longer-term systemic reform to address a broad range of issues - including the difficulties and discrimination people with mental health problems face within work, a lack of in-work assistance that limits opportunities in workplaces, and the inadequate support that the benefits system offers.

For example, in relation to benefit reforms to address the income gap, the Commission calls on the government to -

• review the level and provision of employment and support allowance (ESA) to ensure that it adequately supports people experiencing mental health problems;
• make ESA awards more long-term with regular support and opportunities offered;
• raise and expand eligibility for SSP for the duration of the coronavirus crisis;
• record and report on vulnerability data of universal credit claimants;
• keep and extend the Covid ‘uplift’ to universal credit and working tax credit; and
• suspend conditionality for those out of work due to mental health problems.

Commenting on the report, MMHPI Chief Executive Helen Undy said today -

‘If the government is serious about ‘building back better’, it must address the employment barriers that are leaving many people with mental health problems dreading a return to normal after the pandemic. The way the country has adapted to home working and other flexible arrangements has proved that we can do it. For millions of people with poor mental health, the idea of going back to business-as-usual - and losing this flexibility - is a huge worry.

We’re calling for urgent action from government to ensure that people with mental health problems are not left behind in the aftermath of the pandemic. That means expanding access to flexible working, improving support for those both in and out of employment, and exposing employers who are failing to do their bit.

People with mental health problems have been more likely to be on low incomes for decades. The pandemic has not only exposed this inequality, it looks set to make it worse. We’re calling for urgent action from the government to put this right.’

For more information, see Closing the gap from moneyandmentalhealth.org