As number of young people not in work set to rise above one million, programme launched in three cities to break cycle of poor mental health and unemployment.

A pioneering approach aiming to break the cycle of poor mental health and unemployment for young people has launched in England, as new data shows that young people with a mental health condition are five times more likely to be economically inactive.

Health equity charity People’s Health Trust will introduce its Good Work for Young People’s Mental Health programme in three cities as the number of 16-24 year olds not in work in the UK rises to a decade high.

The organisations awarded grants as part of the programme support young people with mental health problems, which can be caused or made worse by a lack of work. Three trusted, expert community organisations will work to remove barriers young people face and support them to secure meaningful employment opportunities.

People’s Health Trust has analysed data released by the government in the last week, which shows that those aged 16-34 with a mental health condition are almost five times more likely to be economically inactive than their peers without a mental health condition. Nearly a quarter of all people out of work due to ill health are under 35.

This follows ONS data which shows that at the end of 2024 almost a million young people were not in work, education or training, a figure that has been rising gradually for many years. People’s Health Trust has heard directly from young people that this is both a consequence and a cause of poor mental health. Almost 40 per cent of 17-25 year olds have a possible or probable mental health disorder, People’s Health Trust analysis of NHS data shows.

This puts them at greater risk of living in poor health over the course of their lifetimes and of living in long-term poverty.

Prime Minister Keir Starmer has recently warned that the number of young people not in work risks creating a “wasted generation.” Between 2019 and 2023, economic inactivity due to ill health rose more quickly among 16–34 year olds than any other group, according to government figures.

People’s Health Trust believes every young person deserves a good start to their adult life no matter who they are or where they are from. The Trust is funding young people’s mental health charities based in Manchester, Norwich and Southampton as part of a pilot to support young people experiencing social and economic disadvantage in these cities into good quality work.

In a pioneering approach, these organisations will embed specialist employment support (known as Individual Placement and Support - IPS) into their practice, creating new pathways to good work.

The IPS worker model has proven to be effective in supporting people with severe mental health difficulties into employment. People’s Health Trust will work with the local mental health charities to determine whether it is also an effective approach for young people aged 16 – 24 with acute, mild to moderate mental health problems – making this a ground-breaking approach. The programme will be evaluated by the National Institute for Health and Care Research (NIHR) School for Public Health Research. The programme has significant potential for a cost effective roll out across the country.

People’s Health Trust’s Chief Executive, John Hume, said:

“Young people deserve the very best of starts to their adult lives. What many have told us is that this is far from the reality. Many feel confined to a life of anxiety and worsening mental issues with no prospects of finding good work and see their future as poverty and worsening health. Our programme will provide the very best of support to young people with mental health problems, whilst hopefully demonstrating both a cost-effective way of helping to reduce mental health problems and supporting young people into meaningful work and a positive future.”

Chief Executive of partner organisation No Limits, Natalie Webb, said:

“We are delighted to be part of the Good Work for Young People’s Mental Health programme. At No Limits, many of the young people we support in Southampton want to work but struggle because of their poor mental health. They know that finding and staying in a job can be a key factor in their recovery, enabling them to start on a new, positive, path which will sustain them into adulthood. This programme will provide significant support to these young people, to help them transition into meaningful, supported employment”

People’s Health Trust has been supporting people living in communities experiencing disadvantage and marginalisation across Great Britain for over a decade. We want to stop people dying too young. Our work focuses on supporting communities at a grassroots level to find vital and timely solutions to tackle the causes of poor health, such as safe and secure homes, good work, social connections, community power, and clean air.

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Notes to editors

1. Media Enquiries

For media enquiries please contact Bradford Watson – press@peopleshealthtrust.org.uk / 020 4548 0940

2. Good Work for Young People’s Mental Health programme

The Good work for young people’s mental health programme works with young people experiencing mental health problems to remove some of the barriers they face and support them to secure meaningful employment opportunities.

Funded projects are based in Manchester, Norwich and Southampton and will run from April 1 until March 2027.

3. Data

People’s Health Trust has analysed data published by the government in March 2025, which shows that people aged 16-34 with mental health conditions are 4.7 times more likely to be economically inactive than their cohort. They also show that nearly one in four people out of work due to ill health are under 35.

People’s Health Trust is reporting on the NHS Digital’s survey of the Mental Health of Children and Young People in England, 2023 which finds that 37.6% of young people aged 17-25 have a possible or probable mental health disorder.

The Trust has also noted that the Office for National Statistics estimates 987,000 young people aged 16-24 are not in education, employment or training in the UK as of February 2025 (next quarterly data to be published 23 May 2025).

The consequences of this for the economy are stark. Public Health England research estimated that each 16-18 year old who spends some time not in education, employment or training will cost public services an average of £56,000 over the course of their lives up to retirement age, coupled with £104,000 in opportunity costs. This equates to lifetime public finance costs for all 16-18 year olds who are not in employment, education or training ranging from £12 billion to £32 billion, according to figures from UCL Institute of Health Equity. These are calculations made from 2010 figures, and they will in all likelihood have increased substantially since.

The government’s Get Britain Working White Paper, published in November 2024, states that the steepest increase for economic inactivity due to ill health among age groups has been for those aged 16 to 34, who account for 22.6 per cent of those economically inactive due to ill health, an increase of 3.4 percentage points between 2019 and 2023.

4. Individual Placement and Support

IPS (Individual Placement and Support) is proven to be effective with supporting people with severe mental health difficulties into employment and for people with an alcohol and drug dependence. It involves intensive, individual support, a rapid job search followed by placement in paid employment, and time-unlimited in-work support for both the employee and the employer. In the Get Britain Working White Paper, the Government committed to continue to expand access to IPS for severe mental illness, reaching 140,000 more people by 2028/29.

5. Quotes from partner organisations

Chief executive of 42nd Street, Simone Spray, said:

“We have been hearing for many years from young people seeking support for their mental health, that they really want to find good places to work where they can build their skills and a secure future, so we are delighted that the model will allow young adults to have a voice and shape what will work the best for them and for employers. There are so many exciting opportunities in Greater Manchester, especially in the creative and digital space - we can’t wait to get started!”

Chief Executive of No Limits, Natalie Webb, said:

“We are delighted to be part of the Good Work for Young People’s Mental Health programme. At No Limits, many of the young people we support in Southampton want to work but struggle because of their poor mental health. They know that finding and staying in a job can be a key factor in their recovery, enabling them to start on a new, positive, path which will sustain them into adulthood. This programme will provide significant support to these young people, to help them transition into meaningful, supported employment”

Development Manager at Mancroft Advice Project, Morgan Pickard, said:

“MAP are thrilled to be a part of People’s Health Trust’s Good Work for Young People’s Mental Health programme. As a charity we’ve been delivering drop-in advice and support to young people in Norfolk for over 30 years, and we know just what a dramatic difference sustained employment can make to wellbeing. We are so excited to have the dedicated resources to focus more on this area of work, helping young people overcome the barriers between them and their work goals; hopefully demonstrating just how impactful Individual Placement Support can be in helping young people reach their potential.”

Dr Daniele Carrieri Senior Lecturer in Public Health at the University of Exeter and a lead researcher with the NIHR School for Public Health Research, who will evaluate the funding programme. Daniele, speaking on behalf of a consortium of lead researchers from the University of Sheffield and Imperial College London, said this:

“We are delighted to be working with People’s Health Trust and the organisations involved in the Good Work for Young People’s Mental Health programme to capture the learning and impact that having embedded individual placement support can have in supporting young people into good quality work and improving their health.”

6. In its Government Missions, Labour committed to halve the gap in healthy life expectancy between different regions of England.

7. People’s Health Trust is a health equity charity with over a decade’s experience working with local communities across Great Britain to address health inequalities through the building blocks of health. We want to stop people dying too young and make health equal.

Since 2011 People’s Health Trust has distributed £133 million to 3,606 local projects reaching 772,642 people.

8. Funded by the Department of Health and Social Care, the NIHR School for Public Health Research (NIHR) is building the evidence base for equitable, inclusive and cost-effective public health practice by bringing together England’s leading public health research expertise in one virtual organisation. The School is a partnership between nine leading academic centres with excellence in applied public health research in England.

The mission of the NIHR is to improve the health and wealth of the nation through research. NIHR does this by:

  • Funding high quality, timely research that benefits the NHS, public health and social care;
  • Investing in world-class expertise, facilities and a skilled delivery workforce to translate discoveries into improved treatments and services;
  • Partnering with patients, service users, carers and communities, improving the relevance, quality and impact of our research;
  • Attracting, training and supporting the best researchers to tackle complex health and social care challenges;
  • Collaborating with other public funders, charities and industry to help shape a cohesive and globally competitive research system;
  • Funding applied global health research and training to meet the needs of the poorest people in low and middle income countries.

NIHR is funded by the Department of Health and Social Care. Its work in low and middle income countries is principally funded through UK international development funding from the UK government.