THE mental health crisis in young people is costing more than £1 trillion in lost earnings, a new expert report warns today.

Four mental health organisations urged ministers to ignore the “wishful thinking” that it is exaggerated or a result of over-medicalisation.

The Centre for Mental Health, Centre for Young Lives, the Children and Young People’s Mental Health Coalition, and YoungMinds report shows how poor mental health leads to less tax revenue and increased benefits spending.

The calculations suggest there is a £24 billion a year cost to employers in lost productivity as well as a “staggering” £1 trillion in lifetime lost earnings.

Ministers were warned they will not boost economic growth and productivity until they tackle the crisis, with NHS data showing that one in five children and young people experience a common mental health problem such as anxiety or depression.

Launching a new Future Minds Campaign, the groups called for greater investment so 70 per cent of diagnosable need is met by mental health services by the end of this parliament, and more community services such as access hubs.

An independent government-commissioned review should also examine the causes of the children’s mental health crisis, including the role played by social media.

The campaign said spending on working-age incapacity and disability benefits is forecast to rise by £21 billion per year in real terms by 2028/29, with mental ill health driving claims among young adults.

Former children’s commissioner for England and Centre for Young Lives executive chairwoman Baroness Anne Longfield said: “The decline in young people’s mental health is one of the biggest health, social and economic challenges of our time.

“It harms productivity, earnings and the government’s agenda for economic growth. Current trends are simply not sustainable.

“The cost of doing nothing would be a disaster for those children struggling with mental health problems, but also for our nation, by seriously impeding many of the government’s crucial missions and ambitions.”

Local Government Association’s Children and Young People Board chairwoman Councillor Arooj Shah said: “Councils should be supported to provide parenting support programmes and to set up local peer support networks for parents and carers with children with mental health needs.”

The Department of Health was contacted for comment.