
The study commissioned by Youth Access analysed data from the 2010 and 2012 English and Welsh Civil and Social Justice Panel Survey to look for links between mental health issues, Neet status and social isolation.
The research found that 35 per cent of Neet young people suffered from mental health problems compared with 14 per cent of non-Neets, while 33 per cent of young people classed as socially isolated suffered mental health problems compared with 16 per cent of those who weren't.
Young people who were socially isolated and Neet were the most likely group to suffer mental health issues, especially when they had experienced welfare legal problems, linked to debt, benefits or access to housing.
Young people who were not Neet and were not isolated had the lowest likelihood of mental illness, especially when they did not have any legal problems.
Professor Peter Fonagy, Freud memorial professor of psychoanalysis at University College London, said the data provided a "more nuanced view" of the factors influencing young people's mental health.
He said: “Young age and Neet status in combination with legal problems combine to create one of the most significant indicators of risk for the mental health of a young person.”
A total of 117 of the 484 young respondents to the survey were classified as Neet (24 per cent), 109 (23 per cent) were classed as “isolated” and 45 (nine per cent) were classed as both.
The annual cost of mental health problems in England is estimated at £105bn and Youth Access believes better interventions could deliver huge savings for the NHS.
Barbara Rayment, director of Youth Access, said: “This study establishes for the first time that housing, money and employment problems are key determinants of young people’s mental health.
“We have a collective duty to ensure vulnerable young people get the services they need in the most efficient way for the taxpayer.
“It is critical that clinical groups, which are tasked with leading child and adolescent mental health services transformation plans in local areas, look beyond traditional clinical solutions and invest in services that can offer a truly holistic, early intervention response.”
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