The Money and Mental Health Policy Institute has published a consultation on regulating spending during periods of poor mental health

The consultation recognises the link between poor mental health and spending habits.  In particular, it sets out ways which mental health can affect spending, including manic spending during a high period of mania, comfort spending to boost a low mood and impulsive spending where no purpose can be attributed to the transaction. 

The consultation found that 93% of people with mental health problems say they spend more in periods of low mental health.

The consultation explores potential policy solutions to the link between spending and poor mental health.  The restrictions which can be placed on an account will vary depending on the user, and the process by which restrictions could be removed could include:

  • A double confirmation by the user.
  • Alerts to a third party.
  • A mandatory cooling off period.
  • A cognitive/mental capacity assessment.
  • Third party sign off.

Responses to the questions raised in the consultation are invited from experts with personal or professional experience.