Severe mental illness & employment: cost-benefit analysis and dynamics of decision making

Abstract

Purpose – The purpose of this paper is to explore the economic benefits of Individual Placement with Support programmes commissioned by NHS North in the North West and Yorkshire and Humber regions. Design/methodology/approach – A literature review was conducted and data collected from supported employment programmes in four localities. An econometric analysis was performed to evaluate likely savings for local commissioners and return on investment for the Treasury. Findings – Integration of employment support within mental health services is central to success. Econometric analysis showed that local commissioners could save £1,400 per additional job outcome by commissioning evidence-based interventions and there is a positive return on investment to the Treasury for every £1 spent there is a return to the Treasury of £1.04. Originality/value – This paper demonstrates the economic and social value of evidence-based supported employment for people with severe mental illness. The economic data generated could be helpful in encouraging investment in effective employment support in other areas. The work, views and perspectives contained in this paper are those of the authors. It does not necessarily reflect the views of the organisations for whom the authors work.

Wellness in work - supporting people in work and assisting people to return to the workforce: An economic evidence review

“…The employment rate for people with severe mental health illness (including schizophrenia and mood disorders) is significantly lower than both the general population and people living with a disability, including those with common mental health conditions (Booth et al, 2014). In terms of ROI, the benefits gained from employment include personal health and social benefits, with less reliance on social care translating into savings.…”

“…The number of people in Wales living with severe mental health disorders rose from 12% before the COVID-19 pandemic to 28% by April 2020 (Wales Fiscal Analysis, 2021). The total cost of poor mental health has increased from £42-45 billion (2019 pre-pandemic) to £53-56 billion (2020-2021 during and post-pandemic) an increase of 25% The employment rate for people with severe mental health illness (including schizophrenia and mood disorders) is significantly lower than both the general population and people living with a disability, including those with common mental health conditions (Booth et al, 2014). In terms of ROI, the benefits gained from employment include personal health and social benefits, with less reliance on social care translating into savings.…”

“…In terms of ROI, the benefits gained from employment include personal health and social benefits, with less reliance on social care translating into savings. An ROI of £1.04 for every £1 spent has been found for placement support programmes in the North West and Yorkshire and Humber regions of England (Booth et al, 2014).…”