In 2000 it was reported that approximately 2.6 million people suffered from depression.In England, it is estimated that the economnc burden will exceed £9 billion annually and approximately  £370 million will account for direct costs of treatment. The cost to the NHS, of caring for patients suffering from chronic conditions and mental health illnesses is £8-13 billion. Of this, depression is the most prevalent mental health conidition. The prognosis of patients who suffer from chronic conditions and depression is a poorer quality of life, due to the  poorer care, poorer outcomes . 

The Quality, Innovation, Productivity and Prevention agenda look to health services to  provide more collaborative and high quality care in order to achieve savings within the NHS,  of £20 billion by 2014-16. Substancial savings in the NHS could be attained, by enhancing the care for both chronic conditions and depression. Depression within patients suffering from long term conditions can have a detrimental outcome indeed. It can cause a deterioration of these chronic conditions, resulting in  poor compliance and adherence to regimens, and consequently decreasing the likelihood of full recovery and rehabilitation. Through spontaneous hospitalisations and increasing GP visits, this increases the econmonic burden of the NHS substancially. Depression  accounts for more than 12% the NHS'  entire  budget.

 The direct costs of mental health (including health and social services ) are approximately £22.5 billion per annum.

 

Funding

In 2006/7 NHS organisations budgeted to spend £8.4 billion on mental health services (for
all age groups), which accounts for 12.4 per cent of all spending The distribution of mental health spending across different areas is shown in
Two-thirds of expenditure is on the ‘other’ category which includes
depression and anxiety disorders. Very little expenditure was specifically for preventive
interventions. In 2007 approximately 1.24 million people had depression and it is predicted that, as a consquence of demographic changes it will increase to 1.45 million people. In 2007, the  average service costs for individuals utilising services was £2,085 and 
the average cost due to lost employment was £9,311.
In 2007 it was estimated that the sum cost of depression services equated to   £1.7 billion. Lost employment brought the total cost to £7.5 billion. By 2026 these figures are projected to be £3 billion and £12.2 billion respectively. 
The  greatest savings would be generated by pharmacotherapy, however it seems that patients are increasingly accepting psychological interventions.  
If 95%  depressed individuals utilised services, (instead of the 65% using it presently), then the costs of these services would be £2.3 billion