Britain is in the grip of a mental-health crisis, with record numbers of people turning to private medical insurance to get help the NHS can no longer deliver, new research reveals.

A new analysis from leading consultancy firm Broadstone shows spending on mental-health treatment through private cover has soared by more than 60 per cent in three years – the fastest rise it has ever recorded.

Mental-health claims now account for 13 percent of all private insurance payouts, up from 8 per cent in 2022 though musculoskeletal problems continue to take the largest chunk of claims at almost 40 percent.

Experts say the surge in private healthcare claims exposes the “desperate state” of NHS services and a nation struggling with post-pandemic stress and anxiety.

Broadstone’s data is drawn from corporate healthcare cover – thousands of employees insured through employer-funded private medical schemes rather than individual policies. These group plans now make up about two-thirds of all private-health policies in the UK, as companies try to keep staff healthy and cut absence amid record NHS delays.

Analysts say they mirror a wider boom across the private-health sector, with millions more buying personal cover as waiting lists grow.

“It’s one of the most striking shifts we’ve seen,” said Sharon Harwood-Davis, leading expert at Broadstone.

“Employees are far more willing to seek help – but they’re also being pushed into the private sector by long NHS waiting lists. Private healthcare gives them faster access to counselling, CBT and psychiatric care.”

Overall, claims across all private-health companies have jumped from 21 per cent of members in 2021 to 27 per cent this year. But the sharpest growth is in mental-health support.

Private therapists and psychiatrists report being “inundated” with referrals from corporate insurance schemes as the NHS battles record backlogs. More than 1.9 million people are now waiting for community mental-health treatment in England – up nearly 50 per cent since 2020.

Mrs Harwood-Davis said the boom in claims showed both progress and pressure:

“Awareness and openness around mental health have improved enormously since the pandemic. But when you have six-month NHS waiting times for talking therapies, it’s hardly surprising people use their workplace cover if they have it.”

Employers are widening benefits to include dependants and part-timers as stress, burnout and depression hit productivity. Broadstone warns the surge in demand will soon drive up premiums, as insurers see their costs grow from the inevitable rise in claims.

“Claims inflation will inevitably feed through into cost,” said Mrs Harwood-Davis. “We’re already seeing higher frequency of use, particularly for psychological and musculoskeletal conditions.”

Back and joint problems currently represent 39 per cent – the biggest proportion – of total spend, but mental-health support has now overtaken cancer care, which has tumbled from 20 per cent of costs in 2022 to just 9 per cent this year.

Analysts call it “the biggest single change in insurance behaviour since Covid.”

Charities say the figures reveal the lingering psychological toll of lockdown isolation, remote working and financial pressures.

Critics warn the UK is drifting towards a two-tier system, where those with insurance get therapy within days while millions without it face endless delays.

Broadstone’s report shows 7.6 million adults now have private medical insurance – up 10 per cent in two years – as employers scramble to plug the NHS gap.

Mrs Harwood-Davis said: “The rise in private mental-health claims is clear evidence of an NHS under intense strain. The private sector is absorbing demand that should be met publicly.”

With GP access shrinking and NHS waiting lists at a record 7.4 million, many experts say mental-health care has become the new front line of Britain’s health emergency.

Mrs Harwood-Davis said: “We’re witnessing the rise of mental health as one of the top reasons people use private insurance. That’s a good thing in one way – people are seeking help – but it’s also a stark warning about the state of public services.

This isn’t about luxury any more. It’s about necessity.”

Lee Knifton, Director of Research & Lived Experience at the Mental Health Foundation, said:

“It’s unsurprising that demand for private mental health support has risen so sharply. Five years after a generation-defining pandemic, which was preceded by harsh cuts to public services and followed by a cost-of-living crisis that destroyed many people’s financial security, poor mental health is more widespread than it has been for decades.

“While some of the increase in demand will be due to increased willingness to seek support, it’s also worth saying that the conditions which support our mental health – like having a supportive community, a good income, and being free from discrimination – have gradually worsened. There’s been a lack of investment in preventative programmes to support mental health, and little additional investment in NHS mental health services to address the crisis. The end result is more people having to turn to private health care to support their mental health, because the NHS is struggling to keep up.”

A Department of Health and Social Care spokesperson said: “Everyone should have access to the NHS free at point of use. A two-tier system where those who have access to private healthcare while others are forced to languish on waiting lists is unacceptable and unfair.

“This is why we’re taking action – since taking office, we have cut waiting lists by over 230,000 and recruited over 2,500 extra GPs. We’re also expanding mental health provision on the NHS by transforming services with an extra £688 million.”