You are currently in the en section of the site.

No thank you, please close this banner.

First published:

Top Tips

Budget 2023: How does it affect you?


On 15 March 2023, Chancellor Jeremy Hunt delivered his financial update, and the Department for Work and Pensions published a policy paper called ‘Transforming Support: The Health and Disability White Paper’. In this blog, we’ll talk through some highlights of what the budget (and white paper) might mean for people living with mental illness. 

Energy Price Support

Research has shown that living in a home that is not properly heated can harm your mental health, and that: 

  • People who have not experienced mental distress in the past are twice as likely to experience severe mental distress if their home is not suitably warm. 
  • People who are already on the borderline for experiencing severe mental distress are three times more likely to experience severe mental distress if they cannot properly heat their homes.  

There is currently a price guarantee on energy bills, meaning that the average household bills in England should be no more than £2,500 per year. This guarantee has now been extended until the end of June 2023. Whereas this is good news, we are still in a cost-of-living crisis and energy bills remain high. Have a look at our page on managing mental health and money while the cost of fuel bills remains high for more information. 

Some people pay for their energy bills through a pre-payment meter. This is where you add money to the meter before using the gas or electricity, rather than getting a monthly or quarterly bill, or paying through direct debit. 51% of people on pre-payment meters have a health condition or disability. If you are in arrears with your gas or electricity bill, an extra charge can be applied to the meter for you to repay the debt.

Some people prefer pre-payment meters as they can help them budget, particularly if they have a mental illness that means they forget to pay bills. However, pre-payment meters tend to be more expensive. The chancellor has now announced that energy providers can no longer charge more for energy that is supplied through a pre-payment meter. Ofgem Chief Executive James Brearley has also announced that energy suppliers would not be restarting the practice of forced installation of pre-payment meters beyond March 31st, 2023, and will only do so if energy suppliers can show that they are not charging more for energy via pre-payment meters.


In this budget, the government has pledged to increase funding for Individual Placement Support services (IPS). IPS offers person-centred support, looking at and addressing the barriers that people living with severe mental illness face moving into employment. The support is tailored to their needs and IPS services create a support plan looking at current skills and working with the person around supporting them to find a vocation that has a positive effect on their well-being. Once the person is in work, they still work with the IPS service to support them to stay in work.  

This increase in funding should mean that more people with severe mental illness get access to IPS. You can usually be referred to IPS by a healthcare professional if you are receiving specialist mental health support, for example from a Community Mental Health Team.  

Many people living with mental illness find that when they are in work, they need the support of occupational health. Occupational health services support people with health conditions in work, for example by suggesting adjustments that should be made to working practices to support people with health conditions. 

The government will be supporting more businesses to offer occupational health support to their employees, and it is worthwhile checking if your employer currently offers occupational health assessments and support. You can find out more about occupational health on the ACAS website.  

The government has also said that people will have more rights to work flexibly. This might mean things like: 

  • Working flexible hours 
  • Working part-time 
  • Working remotely or on a hybrid basis 
  • Taking career breaks 

Flexible working can have a positive impact on well-being with one survey showing that 39% of people who work flexibly see an improvement in their well-being. 

In addition to these measures, the government also supports plans to offer additional leave to people with caring responsibilities; this may include people caring for people with mental illnesses. 


The Work Capability Assessment (WCA) is the way the Department for Work and Pensions (DWP) assesses whether or not you are fit for work, and if you get extra amounts in your Universal Credit or Employment and Support Allowance (ESA) because you are too unwell to work. 

The government plans to abolish the WCA and instead tie the extra amounts you receive to Personal Independence Payment (PIP). In other words, you would need to be in receipt of PIP to get these extra amounts. The plans for this have not been announced in full yet and it will not happen quickly, but it could mean a change of income for people who are not fit for work. 

Alongside this change, the government will be implementing a new Universal Support programme in England and Wales to help people with disabilities such as long-term mental health problems get into and stay in work. We will keep our website updated as more of these plans are announced.

For more money advice, see our tips for managing your mental health and money in 2023.

Top tips and advice

  1. Why the Mental Health and Money Advice service is helping people with mental illness and money issues
  2. This Talk Money Week, read our conversation guides around money worries
  3. Should you be worried about rising mortgage interest rates?
  4. What is financial anxiety?
  5. Budget 2023: How does it affect you?
  6. Why debt can happen to anyone, and how shame can shape our relationship with money
  7. Let’s Get Talking about Student Mental Health: University Mental Health Day
  8. How to save money this Christmas and New Year’s
  9. Tips for managing your money and mental health in 2023
  10. What to do if money worries are affecting your mental health
  11. Blue Badges available for people suffering from mental illness
  12. Budget 2018: How does it affect you?
  13. What the 2018 PIP ruling means for those living with mental health issues
  14. Mental health and Money Advice responds to Goverment’s proposed Breathing Space scheme
  15. Being a carer can affect your mental health and money
  16. What to do when debt worries impact on performance at work
  17. Changes to Support for Mortgage Interest
  18. FCA announces new rules on 'buy now pay later' products and overdrafts
  19. Mental health and money advice for COVID-19 outbreak
  20. How to budget your money during the COVID-19 outbreak
  21. How the Touco app can help you get support around money and mental health
  22. How banks are helping during the Coronavirus period
  23. DWP publishes mental health conditions for PIP back payments
  24. Managing your mental health and money after government cuts
  25. Universal Credit boost for mental health
  26. Household Support Fund
  27. Tips for managing your money and mental health in 2022
  28. How to manage your mental health and money following the energy price rise
  29. How the Universal Credit jobseeker and work capability assessments may affect you
  30. World Bipolar Day
  31. What is the impact of savings on mental health?
  32. How to save money at Christmas 2023 and New Year's 2024
  33. Managing your money and mental health on Black Friday and Cyber Monday
  34. What does the Autumn Statement 2023 mean for you?
  35. What you need to know about the household energy price cap decrease
  36. What does the Budget 2024 mean for you?
  37. Debt Awareness Week: Reasons People Don’t Get Debt Advice and How to Overcome Those Barriers
  38. Your Simplified Options for Dealing With Debt

Other Top Tips & Advice

You may find this other advice useful.

Please tell us more

For urgent help, please see Help & contacts