Enhancing Universal Credit payments for parents could potentially alleviate mental health issues in nearly 100,000 individuals.
The increase in weekly payments for Universal Credit households with children in England and Wales is expected to have a positive impact on mental health and related services, according to a study by the SIPHER Consortium and Professor Nik Lomax. The research indicates that larger payments have a significant impact on mental health outcomes, measured by the Short Form 12 Mental Component Score (SF-12 MCS).
The UK government is implementing a gradual increase in Universal Credit standard allowance, reaching up to around £13.90 more per week by 2029–2030 for eligible claimants, which includes households with children. This reflects an overall monthly figure of approximately £424 for single adults over 25, with protections for individuals with long-term severe disabilities.
Increased financial support from Universal Credit addresses one of the key social determinants of mental health: economic stability and material security. More adequate and predictable income helps reduce financial stressors that are strongly linked to anxiety, depression, and other mental health issues in families, especially those with children who face additional financial burdens.
Enhanced Universal Credit payments can also contribute to reducing poverty and associated social exclusion among children, which evidence shows are strongly correlated with poorer mental health outcomes. By easing financial hardship, these payments can alleviate some of the psychological strain on parents and caregivers, potentially improving the overall wellbeing of children in these households.
From a services perspective, the uplift in Universal Credit might lead to reduced demand on mental health services due to fewer crises triggered by financial stress. This could indirectly ease pressures on NHS mental health services and community support systems in England and Wales, allowing resources to be allocated more effectively.
However, while financial improvements are beneficial, mental health outcomes depend on multiple factors, and adequate access to quality mental health care remains essential. Therefore, these payment increases should ideally be coupled with sustained investment in mental health and social support services to maximize the positive impact.
The Mental Health Foundation, advocating for better income support to improve mental health and reduce the risk of poor mental health for parents and those caring for children, supports this policy. The Foundation is urging the Chancellor to increase income support for parents on Universal Credit and legacy means-tested benefits in the upcoming Budget.
The policy has the potential to reduce the number of parents out of work due to a mental health problem. The introduction of better income support would deliver benefits across society, according to the Mental Health Foundation. The Foundation's report demonstrates a clear link between effective anti-poverty measures and improved mental health.
A similar policy, "Child Payment," is already in place in Scotland at a rate of £26.70 per week. The study by the SIPHER Consortium and Professor Nik Lomax also shows that their research is part of a broader effort to provide evidence-based insights for policy decisions.
The research suggests that a £25 weekly payment could result in a 4% reduction in poor mental health, a £50 weekly payment in a 6% reduction, and a £100 weekly payment in a 13% reduction. Applying these reductions to the population of 2.85m adults in England and Wales with children on Universal Credit, a 13% reduction would represent 95,387 fewer people who might need mental healthcare.
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- The SIPHER Consortium and Professor Nik Lomax's study indicates that an increase in Universal Credit payments in England and Wales could positively impact mental health and related services.
- This study suggests that larger Universal Credit payments can significantly improve mental health outcomes, as measured by the Short Form 12 Mental Component Score (SF-12 MCS).
- The UK government is gradually increasing Universal Credit standard allowance, aiming to alleviate financial stressors strongly linked to mental health issues, particularly for households with children.
- The Mental Health Foundation, advocating for better income support to improve mental health and reduce risk of poor mental health for parents, supports this policy and urges the Chancellor to increase income support for parents on Universal Credit.
- By reducing financial stress, Enhanced Universal Credit payments can potentially reduce the demand on mental health services, indirectly easing pressures on NHS mental health services and community support systems.
- However, while financial improvements are beneficial, the Mental Health Foundation stresses that access to quality mental health care remains essential and should be supported by sustained investment in mental health services.
- The policy, if implemented effectively, could potentially reduce the number of parents who are out of work due to a mental health problem, contributing to overall societal benefits.
