A new study from Deloitte reveals that businesses investing in staff mental health see significant financial benefits, with every £1 spent on mental health initiatives generating an average return of £4.70.
The research, which examined the link between employee mental wellbeing and overall business performance, highlights the growing cost of poor mental health to UK employers. While the cost of mental health issues in the workplace has decreased slightly from £55bn in 2021 to £51bn in 2025, it still remains a substantial financial burden. The primary driver of this cost is presenteeism, where employees work despite being unwell and are less productive, which alone costs businesses £24bn annually.
The report also highlights an increase in mental health struggles among the workforce, with 63% of employees reporting signs of burnout, up from 51% in 2021. The most significant stressors affecting employees include the rising cost of living (60%), personal and family finances (46%), and job security (22%).
The figures are even more concerning for working parents, with 46% reporting concerns about their children’s mental health. This is leading to an additional £8bn in costs to UK businesses each year, caused by performance issues, absenteeism, or employees leaving their roles. Deloitte’s report notes that 10% of working parents take up to five days off per year to support their children, while one in 100 have left their jobs due to the strain of managing work and caregiving responsibilities.
Despite these challenges, many working parents are reluctant to seek support from employers, often relying instead on external resources. This highlights a critical gap in support, as businesses can play a key role in helping to alleviate these pressures.
The findings underline the importance of early intervention in addressing mental health concerns in the workplace. Deloitte’s research suggests that businesses who take proactive steps—such as fostering a supportive workplace culture, implementing mental health policies, and offering flexible work arrangements—stand to gain the most in terms of return on investment.
“The business case for prioritising mental health in the workplace is clearer than ever,” said Elizabeth Hampson, Deloitte partner and lead author of the report. “Employers who actively support their teams, including working parents, can reduce absenteeism, presenteeism, and turnover—all while fostering a healthier, more engaged workforce.”
To maximise the return on investment, Deloitte recommends that employers embed mental health support into their organisational culture. This includes offering access to employee assistance programs, promoting flexible working arrangements to support parents, and encouraging open conversations around mental health.
The findings come from a survey of 3,156 working adults, including 1,834 working parents, conducted by YouGov on behalf of Deloitte. The research also includes a literature review of 26 studies since 2011 that report financial returns on workplace wellbeing interventions, which helped establish the £4.70 return on investment figure.
As the costs of mental health issues continue to rise, the report concludes that businesses cannot afford to ignore this issue. Investing in staff mental wellbeing is not only beneficial for employees but also a smart financial decision for employers looking to enhance productivity, reduce turnover, and improve overall business performance.
