The Policy Exchange report on rising mental health and neurodiversity disorders amongst children and young people
The new report released by The Policy Exchange entitled “Out of Control: Addressing the Rise in Psychiatric and Neurodevelopmental Disorders amongst Children and Young People,” identifies how poor incentives have driven overdiagnosis of mental ill health and neurodivergence in young people, stretching key public services to breaking point. It takes a unique, holistic view of the systems to support young people across health, education and welfare. The costs of support across all three areas have spiralled to tens of billions each year, whilst young people struggle to access early help and those with the most severe needs lose out.
“In ‘Out of Control’ Policy Exchange argues that ‘concept creep’ has stretched societal definitions of mental ill health and neurodivergence too far, with families facing perverse incentives to seek diagnoses to access extra support. As a result these systems are radically becoming unsustainable, with urgent reform required.
The report reveals:
- 1 in 5 children in England is now reported to have SEND. Since 2015 Education, Health and Care Plans, designed for children with the most severe needs, have increased 83%, whilst since 2014 NHS Referrals to children’s mental health services by 50% and Disability Living Allowance claimants at 15 by 20%.
- Half of all schools spending since 2015 has gone on SEND, with costs to hit £11bn a year in 2024/25. Child Disability Living Allowance is projected to hit £6.4bn by the end of the decade. Young person’s mental health now costs the NHS over £1bn a year.
- The SEND, child disability and mental health systems are failing to distinguish between legitimate and exaggerated claims for support. 94% of Education Health and Care Plan assessments were successful in 2024, whilst the vast majority of assessments for Disability Living Allowance are conducted without the assessor ever meeting the child.
The report calls for the current SEND system to be radically overhauled, with EHCPs only for students in special schools, and councils and professionals empowered to manage budgets and resources.”
This publication was released on August 27th 2025: Visit here to download and read the full report
Schools on the Brink: Addressing the Child Mental Health Crisis
This report paints a worrying picture for education this academic year. The findings reveal a system under immense strain, with an alarming rise in mental ill-health and neurodevelopmental conditions among students.
Schools are now at the forefront of this crisis, grappling with a surge in Special Educational Needs and Disabilities (SEND) and an unsustainable system that is failing both students and staff.
The Unprecedented Impact on Schools
The statistics are staggering: one in five UK children has a recognised SEND, and spending on support has skyrocketed, threatening the financial stability of local governments. This isn’t just about numbers; it’s about the daily reality in classrooms. Teachers are struggling with an increasing number of complex cases, often lacking the training, resources, and time to provide adequate support.
The report highlights a “diagnosis creep,” where relaxed diagnostic criteria and a focus on what a child can’t do create a self-perpetuating cycle of low expectations. This “deficit model” can inadvertently harm a child’s confidence and potential, leading to poorer educational outcomes. The system’s reliance on formal diagnoses for funding also creates a ‘diagnosis-seeking’ culture, straining resources and leading to long waiting lists for assessments.
What Can Schools Do?
Given the report’s bleak assessment, schools have a crucial role to play in mitigating the damage.
And here’s how:
Rethink the “Diagnosis Creep”:
Instead of waiting for a formal diagnosis, schools can adopt a “needs-first” approach. By focusing on identifying and addressing a child’s specific needs, regardless of a label, schools can provide earlier, more flexible support. This means empowering staff with training to recognise behavioural and emotional signs, fostering a culture of empathy, and moving away from a rigid, “one-size-fits-all” model.
Prioritise Preventative Measures:
The report underscores the under-weighted importance of wider determinants of well-being, such as sleep, exercise, and social connections. Schools can proactively address these by integrating mental health and well-being into the curriculum, not as an afterthought. This includes promoting physical activity, educating students about healthy habits, and creating a supportive school community that minimises excessive screen time and encourages genuine connection.
Empower Professionals:
The report highlights a lack of confidence and autonomy among teachers. Schools can combat this by providing ongoing, high-quality professional development in areas of mental health and neurodiversity. By trusting and equipping teachers with the right tools, schools can move away from unevidenced interventions and towards sustainable, effective strategies that benefit all students.
The crisis facing UK schools is immense, but by focusing on proactive, needs-based, and empowering strategies, they can begin to regain control and build a more resilient, supportive environment for every child.
Lily Blakeledge
10th September 2025
Support from AMHIE
Get help to implement initiatives in the new academic year with AMHIE. We can help your team to develop and understand mental health and wellbeing using a whole school approach, as well as offer support, advice and resources to make things easier. contact our central team for guidance on how we can best support you: support@amhie.com or 02381120010.