The Mental Health Foundation has responded to measures announced in today’s UK Budget (26 November 2025).
Mark Rowland, Chief Executive at the Mental Health Foundation, said: “In a context of rising mental health needs, we welcome measures in the Budget that will address the causes of poor mental health. These include decisions to ease financial strain, including raising the minimum wage, removing the two-child limit on benefits, and reducing energy bills for consumers. We’re also pleased to hear about action on online gambling, which can have serious mental health impacts. However, missing were clear commitments to increased funding for mental health prevention and support, which remain critical to tackling the UK’s mental health crisis.”
Two-child benefit limit
“In removing the two-child benefit limit, the government has taken one of the most important steps it could for improving the mental health of the next generation, and their parents.
“Experiencing poverty, especially from a young age, is one of the key factors behind poor mental health. The two-child limit policy has penalised millions of families, added to financial hardship, and contributed to an unacceptable legacy of 4.5 million children growing up in poverty. For many of those children and their families, today’s decision to abolish the cap will be life-changing and reduces a significant barrier to good mental health.
“Our own research shows that even a small increase in income for families has real and quantifiable positive effects on their mental health. This is a change that the Mental Health Foundation has long called for, and it could not be more welcome.”
Online Gambling Tax
“Online gambling is particularly addictive, and contributes to the high and rising levels of problem gambling in the country.
“An estimated 1.4 million adults in Britain have a gambling problem. Gambling problems can lead to low self-esteem, stress, anxiety and depression, as well as problem debt. The government estimates that the number of gambling related suicides in England is between 117 and 496 annually.
“Measures like this one that impact the viability of the most harmful forms of gambling are welcome from the perspective of improving the public’s mental health. We hope that the funds raised through this measure can be used to fund measures aimed at preventing problem gambling.”
Cost of Living (Minimum Wage increases, energy bills)
“The cost-of-living crisis has taken a heavy toll on mental health, with rising bills pushing more people into distress. Poverty and poor mental health often create a vicious cycle that is hard to escape. Measures that ease financial pressure, such as today’s increase in the minimum wage and reducing energy bills for consumers, are a positive step and will help reduce stress for many households.”
ENDS
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