Mental health pressures could cost £170bn, equivalent to 5% of UK GDP

• By 2030, almost one in three working age adults (32%) in the UK may be living with a mental health condition
• Teenage mental health rates are projected to reach 64%, twice the adult rate, as the number of young people not in education, employment or training (NEETs) hits a five year high
• 63 days of healthy life lost every year for those with mental health conditions, valued at £298bn annually
• People with mental health conditions are 29 percentage points less likely to be working, giving the UK one of the strongest links between poor mental health and long term economic inactivity

Zurich’s new global report ‘The Value of Mental Health’ warns the UK faces a major economic and social crisis unless mental health support moves from simply diagnosing conditions to actively helping people to enter, remain in and return to the workforce.

The report reveals that by 2030 almost one in three (32%) working-age adults in the UK are projected to be living with a mental health condition, giving the UK the highest rate of diagnosed mental illness among similar high-income economies. This figure is forecast to be twice as high (64%) among teenagers aged 15-19 within the next five years, raising fears around what this could mean for the future of the workforce.

Anxiety disorders (49%) and major depressive disorder (26%) account for the majority of diagnosed conditions, alongside other mental disorders (7%), dysthymia (4%), autism spectrum disorders (3%), ADHD (3%) and bipolar disorder (3%).

The widening employment gap

The largest economic impacts are not driven by short term sick leave, but by a widening employment gap. In fact, 98% of productivity losses are caused by reduced workforce participation. The report reveals that the UK has one of the strongest links between poor mental health and long term economic inactivity, with employment rates 29 percentage points lower among people with a mental health condition (53%) compared with those without one (82%). In comparison, the gap in similar markets like Germany and Australia is around 40% lower at around 17 or 18 percentage points.

Persistently high rates of mental illness despite significant investment

The report shows that the biggest costs of mental illness often sit outside formal protection systems such as community social care. Across six countries analysed – Australia, Chile, Germany, Malaysia, the United Arab Emirates and the United Kingdom – the burden falls heavily on individuals, families and employers, through losses in wellbeing and productivity that can far exceed official mental health care spending.

Cost to the UK economy

In the UK, the economic value of wellbeing lost to mental health conditions is around seven times greater than what is spent on formal mental health services, according to Zurich’s analysis. The UK already invests 1.4% of GDP (around £42 billion) in mental health protection systems, such as community mental health teams (CMHTs), but it's clear this is not sufficient.

Mental health-related productivity losses are projected to exceed 5% of the UK’s GDP by 2030. This is equivalent to £170 billion a year and is far higher than the projected loss for other comparable markets; 4% of GDP for Australia, 3% for Germany, 2% for Chile, and 1% for both Malaysia and UAE.

The report also measures effects on people, productivity, and protection systems through to 2030, using metrics like years of healthy life lost, workforce participation gaps and system level costs.

The impact of early diagnosis on Gen Z and teenagers

Mental health conditions in the UK are increasingly being identified during adolescence and early adulthood, with 41% of 15- to 19-year-olds suffering from an anxiety disorder – higher than any other market analysed.

While earlier recognition should bring clear benefits for treatment, there are worrying signs that this isn’t translating into young people who are ready to join the workforce. Currently there are nearly one million young people (13% of those aged 16 to 24) not in education, employment or training (known at “NEETs”) - the highest level in five years.¹

The government’s Keep Britain Working Review, of which Zurich UK is participating in the “vanguard” phase to create a workplace health standard, showed that investment isn’t enough without early intervention and stronger education-to-work pathways. This report needs to be a wake-up call to link mental health pathways to workforce participation and early intervention when in work, via employer-provided workplace health provision.

Peter Hamilton, Head of Market Engagement at Zurich UK, said:

“The rise in youth mental health care needs is the start of a wave that will shape the UK’s workforce for a generation. Early intervention is key, and it’s the only way to stop today’s challenges from becoming tomorrow’s crisis.

“We know that those who are off work for less than twelve months are nearly five times more likely to return than those off for longer, highlighting the need for rapid employer-led intervention and structured return-to-work support. Unless we intervene, mental health risks will become a persistent drag on productivity, economic growth and social mobility.”

Sojan Joseph, MP for Ashford, Hawkinge and the Villages and Chair of the All-Party Parliamentary Group on Mental Health, said:

“The rising rates of mental health and high numbers of young people not in education, employment or training is very concerning and the two are closely linked.

“Young people who are NEET are more likely to suffer from mental health conditions, such as depression or anxiety, whilst also missing out on the social, structural, and therapeutic benefits that education or work can offer. On top of this, the cost of economic inactivity is deeply concerning.

“We as legislators have a duty to ensure that the employment gap is closed, the cost of economic inactivity is cut, reduce mental health waiting lists, and deliver parity of esteem between mental and physical health.”

Victoria Hornby, CEO of Mental Health Innovations, said:

“Mental ill-health is still one of the leading causes of workplace absence, both short and long-term. Many people living with mental ill-health want to work, but feel held back, whether through loss of confidence or harmful workplace experiences they've faced before.

“We're grateful to Zurich for their commitment to mental health and our partnership that's enabling us to ensure thousands more people in the UK are able to access support when they need it most.”

Zurich’s The Value of Mental Health report is part of a series showcasing the value that can be preserved through approaches to mental health that help support wellbeing, strengthen organisational performance and maintain resilient protection systems.

You can download the report here:

• https://www.zurich.com/insights/personal/the-value-of-mental-health

Notes to editors

¹ - Office for National Statistics (ONS), published 26 February 2026, ONS website, statistical bulletin: Young people not in education, employment or training (NEET)

Data analysis was undertaken by Mandala Partners, a specialist econometrics firm, in consultation with Zurich experts.