In November 2022, the government announced a 4.0% pay increase for mental health practitioners working in public clinics. Ministers stated that this funding aimed to recognise the intense pressure faced by staff during the post-pandemic mental health crisis, and would help retain highly qualified personnel who are increasingly lured away by private practices or alternative careers.
However, union representatives argued that this adjustment did not reverse the long-term erosion of real pay that had occurred over the last decade due to austerity measures. They pointed to public sector expenditure guidelines suggesting that the Treasury expected "heightened spending restraint" in future budgets to manage national debt levels. Fig. A.1 shows the official figures for mental health practitioner pay compared to changes in the cost of living since 2012.
Fig. A.1 – Average Mental Health Practitioner Pay & Consumer Price Index (CPI) 2012–2022
| Year | Average Annual NHS Mental Health Wage | Consumer Price Index (2012 = 100) |
|---|---|---|
| 2012 | £27,500 | 100.0 |
| 2014 | £28,100 | 104.2 |
| 2016 | £28,800 | 106.1 |
| 2018 | £29,500 | 110.5 |
| 2020 | £30,400 | 113.8 |
| 2022 | £31,800 | 125.2 |
Despite the pay award, addressing structural vacancies in public mental health remained highly problematic. The work is demanding and specialised. For instance, clinical psychologists must complete a minimum of a doctorate-level qualification and up to six years of postgraduate clinical training before they can practice. Furthermore, practitioners often view their role as a 'vocation'—a career path chosen out of a strong desire to support vulnerable people, meaning they are less responsive to short-term changes in pay. Additionally, over two-thirds of the working-age population is blocked from entry as they do not possess the required scientific bachelor's degrees. This has led many to argue that the underlying staff deficit can only be resolved by subsidising university fees and easing entry visas for overseas medical professionals.
Explain, using information in Extract A, two reasons why the wage elasticity of supply of labour for public mental health practitioners is likely to be inelastic.
