The report identified the explosion in dementia cases as one of the factors which will place significant extra strain on mental health services.
The study, Paying the Price, predicted the cost of mental health services will double from£22.5bn to£47bn a year over the next 20 years.
It said the number of people suffering from dementia will rise by 61% over the same period. However it found that that occurrences of mental disorders, including schizophrenia, will remain stable.
Pressure on social care
Niall Dickson, King’s Fund chief executive, said: “The fact that we are living longer is a cause for celebration, but it will mean that the health and social care systems will have to cope with a dramatic increase in the number of people suffering from dementia.
“Unless there is a major breakthrough in drugs to arrest the course of this illness, there will be a great need for extra care and support, some of it quite intense,” he added.