The King's Fund has warned that a change to NHS mental health funding rules could undermine Prime Minister Andy Burnham's ambition that young people should no longer face long waits for mental health support, with more than half of children referred to community services still waiting for care a year later.
Under the Mental Health Investment Standard, local care systems must increase their mental health spending in line with the overall rise in their funding. Last year the standard went further for children and young people, requiring spending on their services to grow faster than that rate in recognition of historic underinvestment in their care. That extra requirement has now been dropped, which the think tank says leaves the additional investment in children's mental health potentially at risk.
Thirty per cent of demand, eight per cent of spending
Children and young people are estimated to account for around 30% of demand for all mental health and neurodevelopmental services, yet services for them receive just 8% of total mental health spending.
As of July 2026, 584,193 children referred to community mental health services were waiting for an assessment, care plan or intervention. Of those, 51% had been waiting for more than a year and 30% for more than two years.
The King's Fund says long waits at such a critical stage of life can deeply affect children's development, emotional wellbeing and quality of life, with consequences that can last into adulthood. The impact is also visible in schools: children aged 8 to 16 with a probable mental disorder are seven times more likely to have missed more than 15 days of school in a single term than those without.
Government commitments
As part of its ambition to raise the healthiest generation of children ever, the government has pledged to tackle the longest waits by recruiting 8,500 more mental health staff, expanding mental health support teams in schools and offering support through Young Futures Hubs.
The think tank welcomed those steps but said their success depends on services continuing to receive adequate investment. With children's services losing the protection of the investment standard, and Integrated Care Boards facing difficult decisions to balance their books, it is urging the government to make sure children's mental health services are prioritised.
Niamh Buckingham: 'A crucial window'
"With half of all mental health conditions starting before adulthood, we risk missing a crucial window to support children and young people when they need it most," said Niamh Buckingham, Policy Adviser at The King's Fund.
"Hundreds of thousands of children are stuck waiting months or even years for mental health support, placing pressure on families, schools, and community services, with wider impacts to their education, relationships, and future."
She added: "This highlights the need for a renewed focus on preventing poor mental health in early life, as well as action to retain the spotlight on funding children's mental health services and enabling them to intervene earlier. Otherwise, we risk a generation growing up in uncertainty stuck in waiting rooms, rather than being supported to thrive in classrooms and their communities."
