Mental health services’ share of the NHS budget is set to fall next year, prompting criticism from health leaders and charities.
The Government has been accused of "failing" patients amid a surge in demand for mental health support.
Health Secretary Wes Streeting confirmed in a written statement that mental health spending will drop to 8.71 per cent of the baseline NHS budget in 2025-26, a 0.07 per cent decrease.
This reduction comes despite growing pressure on mental health services and warnings of a deepening crisis.
Charities expressed "dismay" at the news, predicting a further decline in the nation's mental health with repercussions across society.
Health leaders echoed those concerns, calling the decision "deeply disappointing".
Mr Streeting defended the allocation, stating the proportion of spending remains "almost exactly the same as last year".
He attributed the slight decrease to "significant investment in other areas of healthcare”.
“Much of this investment in other areas, such as investment to improve general practice, will also have secondary benefits for mental health care,” he wrote.
Mark Winstanley, chief executive of Rethink Mental Illness, said the charity is “profoundly disappointed” in the decision, calling it a “troubling indicator of longer-term decline for mental health services”.
He added: “It contrasts against the increasing numbers of children and adults now seeking mental health treatment, who are at greater risk of deteriorating into crisis, exiting education or the workplace, and experiencing suicidal thoughts as they languish on lengthy waiting lists.
“The Health Secretary himself has admitted that mental health is in a dire state, yet there was a glaring omission of mental health in the Government’s recent plan to bring down NHS waiting lists.”
Earlier this month, Mr Streeting told the BBC’s Sunday With Laura Kuenssberg that there was an “overdiagnosis” of mental health conditions.
His comments came amid an overhaul of the welfare system by the Government, with Chancellor Rachel Reeves using her spring statement on Wednesday to make further cuts aimed at reducing the welfare bill by nearly £5 billion.
Mr Winstanley added: “Taken alongside the sweeping and ill-conceived benefits cuts announced yesterday, we believe that people living with mental illness are being failed by the Government.
“Without a clear and urgent plan to ensure people receive care and treatment early, the nation’s mental health will continue to decline and the impact will be felt across society.”
Dr Sarah Hughes, chief executive of mental health charity Mind, said Mr Streeting “has acknowledged that we have a mental health crisis and that services are in dire state”.
“But, despite having safeguards that are supposed to ensure the proportion of spending on mental health increases in line with the overall growth of funding to the NHS, the reality is we’re going backwards,” she added.
“The Government wants to fix the NHS and to help get people who can work back into employment.
“To do that, we need to tackle long waits for mental health treatment, improve the quality of in-patient care and address the drivers of poor mental health.”
Saffron Cordery, interim chief executive at NHS Providers, added: “It’s deeply disappointing that the share of NHS spending on mental health is set to fall next year at a time of soaring demand for services.
“It’s time to give mental health the priority it deserves. For years national support and resources for mental health services have lagged far behind what is given to physical health.”
A Department of Health and Social Care spokesperson said: “This Government is increasing investment in mental health care by an extra £320 million in real terms, meeting the Mental Health Investment Standard.
“This includes funding to recruit 8,500 staff across mental health services, expanding mental health support in schools and investing in new mental health crisis centres – helping deliver our Plan for Change to ensure everyone can access the care they need.”
