The Research Leader

Mental health investment could transform GCSE results

A new report shows that supporting young people with mental health would improve school outcomes and boost the economy

A new report shows that supporting young people with mental health would improve school outcomes and boost the economy

19 Aug 2025, 5:00

Behind every grade students will receive this Thursday lies more than just hours spent in the classroom. Mental health, self-worth, self-belief and resilience are emerging as some of the most significant factors in academic success – and we cannot ignore this evidence.

GCSE grades shape the next stage of teenagers’ lives. They determine whether they get into their chosen sixth form or college, influence career opportunities and without doubt affect their confidence and self-belief too.

But the cause-and-effect relationship between results and mental health is not a one-way street.

New analysis from PBE reveals that reversing the decline in children’s mental health over the past decade could potentially improve each child’s grades by as much as 1.6 points.

That margin can be the difference between a pass and a strong pass, between a student feeling capable and confident or facing crushing, unnecessary disappointment.

Mental health, therefore, is not just about wellbeing. It is central to unlocking potential. And this is not an abstract argument. It has real, tangible implications for children, schools, the economy and society.

The picture in our schools is stark. One in five children aged 8 to 16 is likely to have a probable mental health condition. Teachers work tirelessly to support students academically and emotionally, but the challenges they face are enormous.

PBE’s research quantifies what many educators already witness daily. Children struggling with anxiety, depression or low self-esteem find it harder to concentrate, participate, and achieve.

These challenges don’t just affect immediate grades. They carry lifelong consequences. Improving mental health now could provide a lifetime economic benefit of £51 billion for today’s school-aged children. 

Improving mental health now could provide a lifetime economic benefit of £51 billion

That’s a saving worth making in any economy, and a difference in children’s lives and their futures that we cannot ignore.

Schools play a pivotal role. They are where children spend most of their waking hours, where friendships are formed and where early signs of distress often first appear.

Positive relationships with parents, adults in schools, teachers, mentors or counsellors can make the difference between a child who thrives and one who falls behind.

Over more than 30 years, Place2Be has seen first-hand the transformative power of school-based mental health support. Children who receive timely, evidence-based interventions, ranging from one-to-one counselling to group work and parent-child coaching see difficulties ease, build resilience and flourish academically and emotionally.

Yet, despite growing recognition of the problem, support remains patchy. NHS figures show record numbers of children facing mental health challenges, but waiting times for specialist support are long and many children do not meet the threshold for clinical services.

Government initiatives such as Mental Health Support Teams and Early Support Hubs are valuable, but they do not yet reach every school or cover the full spectrum of needs. 

There is, and will remain, a whole group of children with moderate to severe mental health needs who are missing out on specialist support. Meanwhile, nearly 40 per cent of school leaders report that staff capacity limits their ability to maximise existing resources.

The reality is clear. The solution cannot rest solely with schools or the NHS. It requires collaboration across health, education, local authorities and the voluntary sector. We need coordinated investment that integrates mental health into the heart of school life rather than treating it as an add-on.

Schools should have access to suitably skilled mental health professionals, who know, understand and are trusted by their school community.  Local NHS and Integrated Care plans and commissioners need to work with schools to establish the flexible, locally tailored support that will best meet the community’s needs.

The stakes are high. Every pound invested in reversing the decline in children’s mental health yields multiple pounds in lifetime economic benefit, according to PBE.

But beyond the numbers, there is a moral imperative. Every child deserves the chance to succeed, to feel confident and to pursue their ambitions.

So, as we approach GCSE results day, it is worth remembering that behind every grade is a child with a story, challenges and aspirations.

We must be by their side as they manage their feelings around these outcomes, but we must also do more about the feelings that shaped those outcomes in the first place – supporting and nurturing children and young people to reach their potential through good mental health.

Read the full report by Pro Bono Economics for Place2Be here

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