David Clark Martin Knapp Richard Layard Guy Mayraz
Abstract
At present six million people are suffering from clinical depression or anxiety disorders, but only aquarter of them are in treatment. NICE Guidelines prescribe the offer of evidence-basedpsychological therapy, but they are not implemented, due to lack of therapists within the NHS. Wetherefore estimate the economic costs and benefits of providing psychological therapy to people notnow in treatment.The cost to the government would be fully covered by the savings in incapacity benefits andextra taxes that result from more people being able to work. On our estimates the cost could berecovered within two years - and certainly within five. And the benefits to the whole economy aregreater still.This is not because we expect the extra therapy to be targeted especially at people withproblems about work. It is because the cost of the therapy is so small (£750 in total), the recoveryrates are so high (50%) and the cost of a person on IB is so large (£750 per month).These findings strongly reinforce the humanitarian case for implementing the NICEGuidelines. Current proposals for doing this would require some 8,000 extra psychological therapistswithin the NHS over the next six years.
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Publisher Info
Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0829.
Find related papers by JEL classification: H5 - Public Economics - - National Government Expenditures and Related Policies I1 - Health, Education, and Welfare - - Health
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