from Part II - Mental Health and Employment
Published online by Cambridge University Press: 21 October 2026
In Britain, there has been a major increase in economic inactivity due to mental ill-health. This has huge fiscal costs. Clearly, such people need treatment for their condition. But they also need help with finding work and keeping it.
This chapter examines the well-tested system of Individual Placement and Support (IPS). Most trials show quite large increases in the proportion of people in work. Using reasonable assumptions, we find that, for people with mild or moderate mental health problems, IPS pays for itself within five years. For people with severe mental health problems, the BCR is 1.7. This is quite low, but one should note that the beneficiaries of the policy are among the most unhappy members of the community.
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