A failure to treat people with mental health problems and get them back into work is costing the government, employers and society £67bn a year.

A think-tank has revealed that a lack of understanding and support in the workplace and gaps in services have led to mental health problems becoming one of society’s costliest issues.

New Philanthropy Capital (NPC), which works with charities and funders, says rising unemployment and a tough economic environment is making it even harder for people with mental health problems to find work.

Its new report, Job well done, finds that while there are many promising schemes that get people with mental health problems back into employment, there is a lack of funding and services remain patchy across the country.

NPC highlights the opportunities for private funders to invest in projects that could save money and improve the lives of thousands of people.

Benedict Rickey, author of the report, said: "For too long the issue of mental health and employment has been put in the ‘too hard to do’ box and been ignored. Many think that people with mental health problems can’t work, whereas in fact the vast majority can if they get the right support.

"By funding charities that are effective at helping people with mental health problems back to work, the costs to government and society could be cut dramatically. There are also many things employers can do to make their workplaces more mental health friendly."

Mental health problems affect one in six adults in the UK at any one time, and recent reports have highlighted the increase in workplace stress due to the economic downturn.

NPC estimates that 1.3 million people with mental health problems rely on benefits, yet many would like to return to work.

Few employers provide mental health support in the workplace and three quarters have no workplace mental health policy at all.

Emma Mamo from Mind said employers need to recognise the problem and do more to create a positive working environment: "Mental health is still the elephant in the room in most workplaces. Employees are reluctant to raise the subject, for fear of discrimination, while managers often shy away from the subject, for fear of making matters worse or provoking legal action.

"This culture of silence means undetected mental health problems can spiral into a crisis, resulting in sickness absence."

The report argues that effective treatment, one-to-one employment support and mentally healthy workplaces are all key to getting people back into work and supporting them to stay in work.

In 2008, the government launched its Improving Access to Psychological Therapies (IAPT) programme in an effort to improve access to mental health treatment.

The aim was to give every adult suffering from anxiety disorders or depression access to ‘talking’ therapies such as Cognitive Behavioural Therapy (CBT).

However, so far the programme is only available in 60% of the UK and there have been reports of delays when it comes to receiving treatment.

One of the most successful schemes has been Individual Placement and Support (IPS), which gives tailored, one-to-one employment support to people receiving mental health treatment and has been shown to triple the number of people getting work.

Dr Bob Grove from the Centre for Mental Health, commented: "IPS is the most effective way of getting people into paid work and enabling them to have a career. The key is getting people into work quickly and then supporting them in the workplace. The problem is that IPS is only available in certain parts of the country so it’s simply not an option for many people who would benefit from it."

The issues raised in the report are being debated at a roundtable hosted by NPC and Centre for Mental Health today, with representatives from Mind, the Department of Health, commissioners, charities and major funders.

For the report go here

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