Research evidence suggests that NHS costs of treatment of asthma in adults are associated with psychosocial factors, including for some patients, dysfunctional health beliefs and high levels of panic-fear. Clinical research and pilot work provides prima facie evidence that a brief cognitive behavioural intervention can significantly reduce levels of panic-fear, and hence service-usage. This project will estimate the proportion of a defined population who would benefit from an effective psychological intervention for improved self management of chronic asthma and compares the outcomes (clinical, psychological, economic and quality of life) for a randomly selected group of patients with psychological complications receiving a brief cognitive behavioural intervention, compared to a control group receiving standard medical treatment. The two phases of the project will yield cost effectiveness data which can be generalised to give estimates of health gain and costs savings for a given population of known asthma and panic-fear prevalence.