A new Health and Social Care Committee report has highlighted the need to extend a pilot scheme of neighbourhood mental health centres and for more sustainable funding for third sector organisations. 

Its recommendations reflect two of our policy calls, which we’ve highlighted in recent consultation responses to government and also in our Bridging the gaps report on third sector counselling services. 

Neighbourhood mental health centres 

The neighbourhood mental health centres are one-stop shops providing a range of support within communities, including housing, mental health, social and employment support. They offer personalised care without the need for a referral and help to improve access and reduce stigma.  

There are five pilot centres - in Tower Hamlets in London, Sheffield, York, Cumbria, Lewisham and Birmingham. However, funding is only confirmed until April 2026, putting the project at risk. 

MPs on the committee were told during a visit to the Tower Hamlets centre that initial data suggests reduced inpatient admissions and shorter stays.  

The committee has called for funding to be extended for another 12 months. This would allow an evaluation of how the centres have improved outcomes for service users, creating an evidence base for more centres to be rolled out across the country.  

Our policy team has visited the centre in York, which is led by BACP President Lynne Gabriel, to see the difference it's already making for people in the local community.  

Funding cycles 

The committee’s report also recommended that the Department for Health and Social Care and NHS England should support local commissioners to move away from short-term commissioning cycles. It wants there to be multi-year contracts for voluntary, community, and social enterprise organisations that support the delivery of community mental health services. 

The committee had heard criticism that short funding cycles negatively affected staff retention and reduced services’ ability to innovate.  

Many of these third sector organisations are delivering services for the NHS, while many others provide additional choice and access for clients, relieving pressure on NHS services.

We made this point in our Bridging the Gap report – which emphasised the complexities of funding for third sector organisations and the impact this was having on counselling services, their work and their abilities to improve access to therapy in response to rising demand. 

Our report has been shared with policy-makers, commissioners and organisations. 

Common sense calls

Matt Smith-Lilley, our Policy and Engagement Lead (Mental Health), said: 

“The committee’s recommendations are common sense calls that would have a positive impact on counselling provision – and would help more people in need access vital therapeutic support. 

“They’ve highlighted some of the key points we’ve been making to policy-makers and commissioners over the past few years. 

“We’ve seen first-hand how the Neighbourhood Mental Health Centres are fantastic examples of innovative practice that are seeking to bring care closer to people and communities. It’s crucial this pilot programme has sufficient funding to deliver and fully evaluate the impact of its delivery models is vital to ensure we're able to learn fully the lessons of this mode of delivery. 

“Third sector mental health services are facing challenges, complexities and uncertainties in their funding, impacting on their ability to deliver life-changing therapy. They must have greater certainty and stability in their funding by receiving multi-year service contracts.  

“The Government and NHS England must act on this report to ensure improved access to therapy for those in need.” 

Read the full Health and Social Care Committee report and recommendations.