Through the lens: ethnicity, money and mental health

• Context
• The study
• Key findings
• Points to consider

Context

People with mental health problems are likely to fare worse across a range of financial indicators than those without such conditions. Individuals from minoritised ethnic groups are disproportionately affected by the economic and social determinants of poor mental health, including low income, social exclusion and racism. They also often face additional barriers to good financial health, such as systemic barriers to entering into, progressing and staying in work, and are also more likely to be in a household that’s behind on bills. This report calls on support services, employers and essential service firms to take steps to address the inequalities that people from minoritised ethnic groups with mental health problems too often face.

The study

The study comprised a survey with 262 members of the Money and Mental Health Research Community - a group of nearly 5,000 people with lived experience of mental health problems – and qualitative interviews with eight members of the Research Community from minoritised ethnic groups. It also included analysis of existing data sets - Wave 12 of Understanding Society: The UK Household Longitudinal Study from the University of Essex, and the Financial Conduct Authority’s Financial Lives 2020 survey. The report also draws on literature relating to mental health and ethnicity.

Key findings

Overall, people with mental health problems from minoritised ethnic groups face systemic barriers to entering into, progressing and staying in work and are less likely to be financially resilient as a result.

• Analysis of national datasets show that 43% of people from a minoritised ethnic group who have a mental health problem have good savings, compared to 53% of White British people with such conditions.
• Among those with mental health problems, people from minoritised ethnic groups are more likely to be in a household that’s behind on bills - this ranges from 9% of White people to 33% of people who identify as Black, Black British, Caribbean or African.

Given these significant challenges to good mental and financial health that people from minoritised ethnic groups can face, it is particularly concerning that this group often experience barriers to accessing, and worse outcomes when receiving, support with their mental and financial healthThe report concludes with recommendations for stakeholders in mental health services, employers, debt advice firms, essential service providers and producers of national statistics such as government and the NHS about how to support people and improve records.

Points to consider

• Methodological strengths/weaknesses: The report gives no details about the methodology. However it does note limitations relating to the availability of data and particularly concerning the representation of people from minoritised ethnic groups in national datasets and how ethnicity is coded, making it hard to analyse separate ethnic groups. The authors also note that their own qualitative research was not able to represent all ethnicities.
• Applicability: Of interest to anyone working with people with mental health issues and people from minoritised ethnic backgrounds, and to government, policy makers, service providers, support agencies and financial institutions.
• Relevance: Highly relevant given the high proportions of people who suffer from mental health issues at some point and the lack of recognition of the inequalities relating to ethnicity.
• Generalisability: The research is specific to the UK, but the issues around intersectionality of mental health, ethnicity and finances are likely to be similar in other markets.