The State of Happiness, which is based on the results of three-year long government backed "wellbeing" pilots in Manchester, Hertfordshire and South Tyneside, found that children's outcomes greatly improved when schools ran a programme focused on boosting wellbeing.
In addition to changes in schools, the report recommends that apprenticeships and other programmes for teenagers be tailored to include elements that help "strengthen psychological fitness" to assist young people in finding and keeping work.
Government should also support families more so parents are happier and children are less likely to face problems at home and at school, the report claims.
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