Mental health advocates and premiers are urging Ottawa to renew a mental health care funding agreement that expires in March.
“We just can’t afford to go without mental health,” said Sarah Kennell, vice-president of policy, partnerships and advancement at the Canadian Mental Health Association during a July 23 webinar.
“Our economy is strongest when Canadians are mentally well … Investments in mental health are [investments in] economic infrastructure.”
In 2017, Ottawa pledged $5 billion in funding to the provinces and territories for mental health care over 10 years. The Canadian Mental Health Association wants the government to renew this funding beyond next March’s expiration date.
In addition, in 2023, Ottawa allocated $25 billion over 10 years for provinces and territories to spend across four health priorities, one of which is mental health and addictions care. That funding is set to end in 2033.
The 2017 funding for mental health services was “integrated” into this 2023 funding for the years 2023 to 2027, Health Canada said in an email.
However, a 2024 report from the Canadian Mental Health Association found that, on average, provinces and territories only spent 15 per cent of funding from the 2023 agreements on mental health care.
In a statement to Canadian Affairs, Health Canada highlighted the federal government’s past investments.
Provinces and territories will “continue to have the flexibility” to use federal funding to support mental health and addictions care, the statement said. It did not indicate what will happen to the 2017 agreement when it expires.
Cost barriers
Canadian mental health advocates say the needs are high.
In a June report, 41 per cent of people reported having an anxiety disorder, depression or other mood disorder in their lifetime.
Of these, more than half said they had stopped treatment earlier than anticipated; the most common reason given was because they did not see progress.
These findings are echoed in 2024 Canadian research showing 41 per cent of adults and 36 per cent of children and youth have unmet mental health needs.
Cost can be a barrier to treatment.
Only psychiatry and mental health services in hospitals are covered by Canada’s public health insurance. Provinces and territories decide which other mental health services to fund, so care varies greatly across Canada. Not all private insurance plans cover mental health care, such as psychotherapy or addiction treatment.
In a 2023 survey, 15 per cent of Canadians said cost kept them from accessing needed mental health support.
‘Difficult time’
In her webinar presentation, Kennell pointed to several reasons for poor mental health among Canadians.
These ranged from cost-of-living concerns to chatbot use increasing individuals’ feelings of loneliness.
Financial insecurity is also a key stressor, says Kennell, and this is only exacerbated by the ongoing trade tensions with the United States.
“It makes for a very difficult time to be talking about anything other than tariffs and economic security,” she said in an interview after the webinar.
On July 22, Canada’s premiers issued a statement with their shared priorities.
“Critical health-care funding is set to expire as soon as March 2027, leading to a fiscal cliff,” they wrote, noting expiring agreements for mental health and addictions programs, home care, long-term care, medicines and drugs for rare diseases.
“Premiers are calling on the federal government to renew these funding agreements,” the statement says.
They are also asking for an overall five per cent increase in federal transfers for health care beginning in 2028.
Economic growth
The premiers’ “decisive and clear” support for mental health-care funding is encouraging, says Kennell.
Health-care funding needs to be a priority, even as Ottawa and the provinces negotiate trade deals and pursue economic growth, she says. Investments in mental health help support workers and the economy, she says.
A 2023 report shows half a million Canadians miss work each week due to mental illness, leading to about $6.3 billion lost annually.
“We would argue that [investing in mental health is] an investment in our future prosperity rather than adding to the deficit,” said Kennell.
The federal government’s push to build more homes and major infrastructure projects only reinforces that need, says Kennell. Workers in the trades often struggle to access mental health and addictions care, she says.
“If we don’t put in place the supports [these workers] need to be well, then we won’t be able to achieve our [national] ambitions,” she said.
