UKCP’s response to the 2025 spending review

UKCP has responded to HM Treasury’s 2025 spending review in which we highlighted and evidenced several key priority areas.

In our response, we argued for investment into high-quality mental health support, especially psychological therapies in the NHS. With the government’s commitment to recruiting 8,500 additional mental health staff, addressing the barriers to psychotherapists and psychotherapeutic counsellors entering the NHS workforce and funding the training and recruitment of these professionals is vital. We also highlighted the importance of ringfenced resources for mental health training expansion and expanding funded training roles within the NHS Talking Therapies programme.

We also urged the government to expand mental health services for people with highly complex emotional needs. A report on research with this patient group and the effectiveness of local intensive therapeutic services in addressing their needs will be published this spring (2025).

Finally, we highlighted the importance of extending VAT exemption to psychotherapy, psychotherapeutic counselling and counselling services. Currently there is an unfair disparity between psychotherapists, psychotherapeutic counsellors and counsellors, who have to pay VAT on their earnings above £90,000, while other mental health practitioners such as psychologists and psychiatrists are exempt. We urged the government to extend this exemption to all qualified, PSA registered and accredited psychotherapists, psychotherapeutic counsellors and counsellors. This will remove an additional barrier to those seeking care and address the disparity between different types of mental health practitioners.