The Keep Britain Working Review have published a new report that showcases the early barriers to entry that many young individuals are facing at the start of their work journey. Young people with mental health conditions are nearly five times more likely to be economically inactive compared to their peers, according to the report.

Led by former John Lewis boss Sir Charlie Mayfield, the report investigates the factors behind rising levels of economic inactivity and how government and businesses can collaborate to address the issue.

Key findings from the report include around a quarter of those economically inactive due to ill-health are under 35, and young people with mental health conditions are 4.7 times more likely to be economically inactive.

8.7 million people in the UK have a work-limiting health condition, including 1.2 million aged 16 to 34. Additionally, those out of work for less than a year are five times more likely to return to work compared to those out longer.

Liz Kendall, secretary of state for work and pensions, said: “We must do far more to help pool stay in work and get back quickly if they fall out. That’s why, as part of the reforms in our Pathways to Work Green Paper and our Plan for Change, we are making a decisive shift towards prevention and early intervention.

“We want to help more employers to offer opportunities for disabled people, including through measures such as reasonable adjustments, and we are consulting on reforming Access to Work so it is fit for the future.

“I want to thank Sir Charlie for this report. It shows the potential for what government and employers can do together to create healthier, more inclusive workplaces, so we build on the great work some businesses are already doing.”

The report highlights the economic benefits of better prevention, retention, and rapid rehabilitation, as tackling sickness absence and ill-health related economic inactivity could be worth £150 billion a year to the economy. There is a £38 billion potential saving in reducing the number of young people not in education, employment, or training by a third, which could increase UK GDP 1.8 per cent.