Poor mental health is estimated to cost Basildon’s businesses £98million each year, a council report has revealed.

The figures have been calculated using data from the Centre for Mental Health, an independent charity that revealed nationally the annual cost to UK businesses came to £34.9billion – the equivalent of £1,300 for every employee in the country.

The council is now seeking ways in which it can encourage businesses to improve workplaces and support employees.

The Centre for Mental Health estimates that if employers are successful in making improvements it could slash the cost by 30 per cent, equating to £29.6million in savings for Basildon businesses each year.

A council report, published ahead of an economic development committee meeting, states: “Considerations for all severities of mental health wellbeing need to be taken into account, from supported employment to raising awareness and understanding of the ways mental wellbeing can impact individuals.

“Supporting the mental wellbeing of Basildon’s workforce will enable inclusive growth of the borough and support to strengthen the economy.

“The proposal is to raise the awareness of pre-existing offers to businesses, in order to increase the uptake of support for mental wellbeing in the workplace.”

Council initiatives will include using social media, websites, newsletters and engagement events to advise businesses of actions that will support their workforce.

The report also suggests that it is better to “inform businesses of the benefits of improved mental health support for their employees rather than trying to impose further initiatives on them”.

This will mean highlighting estimated profit increases brought on by improved mental health, the average loss of working days and income from sick days due to poor mental health and estimated profit increases if the wellbeing of staff is improved.

The report adds: “Aside from the human aspect and the case for promoting wellbeing for individuals, there are considerable financial gains to be made for local businesses.

“As an issue not always recognised as a barrier to productivity and profitability by a company, it is clear that mental health issues affect a company’s bottom line.

The Council’s ambition to grow the local economy will need to address this barrier.”
The proposals will all be discussed at an Economic Development and Growth Committee meeting next week.