Report

The happy childhood dividend

This report from UK think tank PBE provides new evidence of the long-term economic benefits of investing early in children’s mental health.

Wellbeing boosts life chances. When children feel mentally well, they do better at school, build stronger relationships and reach their life-long potential. This report provides new evidence and analysis of the long-term economic benefits of investing early in children’s mental health. Families, schools and communities are struggling to manage and respond to the severity of the problem of children’s mental wellbeing. An increasing number of children are struggling with their mental health. Currently, around one in five children aged 8-16 are likely to have a diagnosable mental health issue, according to the latest NHS Digital evidence.

The problem is getting worse. Using the Strengths and Difficulties Questionnaire (SDQ), the Understanding Society dataset demonstrates that, overall, children’s mental health has declined in the decade between 2011/12 and 2021/22. These statistics summarise a series of profound personal crises for individual children and their families, and systemic challenge for schools, children’s services and our NHS.

Undoubtedly, there is a moral imperative to reverse this downward trend in children’s mental health. Those working in policy and implementation agree that earlier access to support is key but is persistently difficult to implement. The Government’s plan for public services and the NHS includes multiple commitments on prevention, including investment in Mental Health Support Teams (MHSTs) within schools and colleges, and funding for Early Support Hubs.

However, in 2023/24, only 36% of the referred children and young people received mental health support within the NHS’s four-week target and 34,000 went for two years without being seen. While MHSTs have expanded the reach of in-school support, 40% of school leaders state that staff capacity has blocked them from making the most of this offer. In a stretched system with demand for crisis support outstripping supply, the capacity of new and existing services remains a critical barrier to delivering the full impact of earlier intervention and approaches to prevention that support schools.

It is time for a robust, up-to-date understanding of the long-term economic impacts of children’s mental health to deliver a persuasive case for the value of investing in this area.