Poverty stigma and mental health

September 9, 2024

Young Latin American woman sitting in her room biting her fingers. anxiety concept — image: ©Djavan Rodriguez | iStock

Shari McDaid, Head of Policy & Public Affairs for Scotland, Wales and Northern Ireland at the Mental Health Foundation, discusses new research focused on the mental health effects of poverty stigma

With the right environment, community, and support, we can all enjoy good mental health, but the odds are substantially stacked against people who are living in poverty.

Poverty and susceptibility to poor mental health

More than one in five people in the UK live in poverty, (1) and it is well established that poverty is both a major cause and a consequence of mental ill-health. People who are struggling to make ends meet are more likely to experience stressful situations over long periods of time, such as inadequate housing, food insecurity and trauma. These all increase the risk of developing a mental health condition. Children of parents experiencing poverty are at increased risk of mental health issues due in part to the influence of parents’ mental health; the seeds of lifelong mental ill-health can be sown in childhood experiences of poverty. Ironically, if you have poor mental health, this can affect your ability to work or earn an adequate income due to a combination of internal factors alongside the prejudice and discrimination that people with a mental health diagnosis often face in workplaces.

Now, new research published by the Mental Health Foundation shows that poverty stigma is itself a risk factor for poor mental health and is linked to greater levels of anxiety and depression in the UK. Poverty stigma occurs when people living in financial hardship face negative stereotypes and discrimination because of their financial status.

New research on poverty stigma

As part of the study, a survey of 1,000 people on annual household incomes of less than £30,000 found that one in five respondents (21%) reported they had ‘often’ or ‘very often’ experienced some type of discrimination or unfair treatment in the last 12 months because they live on a low income (called ‘received poverty stigma’). Furthermore, 82% of respondents said that they believed that people on low incomes are ‘often’ or ‘very often’ treated unfairly by decision-makers and institutions, such as public services and the media (called ‘perceived structural stigma’). Those who reported experiencing either received poverty stigma or perceived structural stigma were more likely to have greater levels of anxiety and depression.

Furthermore, participants who reported higher levels of poverty stigma reported higher levels of mental ill-health irrespective of the level of economic hardship experienced. This is an important insight as it suggests that action to reduce levels of poverty may not be enough on their own to combat its negative mental health effects. Targeted action may be needed to specifically address poverty stigma. The study, in partnership with the University of West of Scotland, the University of Strathclyde and the Poverty Alliance, provides new evidence of a link specifically between experiences of poverty stigma and having higher levels of anxiety and depression in the UK.

Particular groups were at higher risk of experiencing poverty stigma, including people who:

were relatively young
were financially just about getting by or worse
rated their subjective social status as being relatively low • were out of work due to sickness or disability
received means-tested benefits
experienced food insecurity.

The researchers also found that women reported higher levels of perceived structural stigma compared to men, although there were no gender differences in reports of received stigma.

Policy action needed to tackle poverty stigma

These findings may be difficult to face, but what do they mean for governments at all levels across the UK? First, we must break down the issues, starting with the mental health impact of poverty. With more than 14 million people across the UK living in poverty, we clearly need action to reduce its prevalence. Eliminating the financial strain associated with poverty by providing everyone with an adequate income to pay for the essentials of daily living would go some distance to reducing the high levels of mental health problems we currently have in the UK.

Secondly, we need our governments to lead societal and cultural changes that challenge poverty stigma and affirm the right of people experiencing poverty to live with dignity. This should start at the top, with our political representatives demonstrating respect and compassion, particularly in how they speak about people on low incomes or people living with poor mental health.

It should extend to all service providers and income support systems for people experiencing poverty, ensuring that they provide a respectful and trauma- informed service. A good example is the Scotland Social Security agency, which commits to ‘delivering social security with dignity, fairness and respect’ and to a trauma-informed approach.

The many links between poverty and mental health exemplify why mental health policy must be cross- sectoral. Mental health policy is unlikely to achieve its aims without collaboration from sectors working to address poverty and vice versa. Mental health should be a consideration in all policy decisions, with proposals subject to assessment to determine how they will impact the mental health of those affected. This is vital given not only the human cost to millions but also the financial cost to the UK. Our 2021 report (2) with the London School of Economics found that the annual cost of poor mental health to the UK economy was £118bn – this is not including NHS treatment costs.

There is good evidence that mental health problems can be prevented, thereby reducing the financial burden on society as well as the personal costs to those directly affected. Given that poverty is a widespread risk factor for poor mental health, action to reduce poverty and its accompanying stigma is a worthwhile avenue for governments to consider.

Read the report ‘Experiences of poverty stigma and mental health in the UK’ at the Mental Health Foundation website.