What is the Costs of Mental Health issues to UK employers?

Deloitte’s report on mental health sets out the costs of mental health issues to UK employers. Bearing in mind this report was pre-Covid, it is reasonable to assume that the impact of mental health issuers will only have increased.

Forest wildfire

The report calculates that poor mental health costs UK employers at £42 – 45 billion a year, compared to £33 - £42 billion in 2017 – the 16% rise is calculated from the mid-point between the two.

For employers in the insurance sector this is further refined to a cost of between £3,245 and £3,353 per employee per year compared to the national average of £1,652.

If an insurance employer has 1,000 employees, this would mean a cost to their business of around £3.3m using the figures above.

The figures above are an average for the UK but the cost to London employers is 36% higher than any other region in the UK.

The cost of mental health issues is highest in the 30-39 year old age group.

From our experience the typical cost of a solution that greatly improves mental health in the work place is about 2% of the cost of the problem. This seems like an obvious case for action.


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