The impact of the cost-of-living crisis on referrals and outcomes in NHS talking therapies.

Background: A large body of research shows that those struggling with finances such as debt are more likely to have poor mental health. More deprived areas of England also have poorer outcomes from NHS talking therapies. The cost-of-living crisis is likely to exacerbate these effects, resulting in greater mental health difficulties and increased demands for services, though current evidence is limited.
Method: We conducted a secondary data analysis on data from NHS talking therapies to examine whether the cost-of-living crisis increases demand for services and worsens mental health over a period of three years (January 2021 to December 2023). We examined correlations based on approximately 86,000 referrals and 57,500 questionnaire responses regarding mental health (i.e., depression and anxiety).
Results: The results indicated that when inflation is higher, people need more sessions before discharge and the recovery rate is lower. The results also indicated that greater food and housing inflation are associated with greater levels of depression and anxiety. There was a trend toward a positive association between less recovery and greater overall inflation (p = -0.07).
Conclusions: The findings suggest that increased inflation during the cost-of-living crisis negatively impacts mental health, results in greater demand for services, and is associated with a lower recovery rate.