The economic downturn could cause a 26% rise in mental health problems, affecting more than 1.5 million people in the UK, Conservatives have claimed.
Shadow health secretary Andrew Lansley urged the Government to take action to prevent what he said was a crisis in the making, with financial insecurity fuelling an increase in mental problems ranging from anxiety to lost self-esteem.
He called for an end to the ban on NHS Mental Health Foundation Trusts generating private income, to allow them to work with employers and independent welfare-to-work providers to offer services to jobless people and vulnerable workers.
Speaking to the Mental Health Network in York, Mr Lansley will say: "In the midst of serious discussions over unemployment figures, fiscal stimulus packages and interest rate cuts, we must not lose sight of the most pressing consequence of the current problems - human misery.
"Mental health illness is the forgotten face of this recession. The Government must take decisive action to prevent a financial crisis becoming a mental health catastrophe.
"That's why we urge ministers to adopt these practical and cost-neutral steps which will help offset the human and financial cost of deteriorating mental health."
Mr Lansley cited independent economists who have predicted that numbers of people out of work could reach 3 million by 2010 - a rise of 3.7 percentage points to 9.5%. An American study has suggested that each percentage point rise in unemployment produces a 7% rise in non-psychotic mental health disorders.
In May this year, mental health charity Mind released a report which found 91% of those with mental problems believed they were made worse by financial difficulties and debt.
Mind's chief executive Paul Farmer said: "Financial health and mental health are inextricably linked. Job insecurity, redundancy, debt and financial problems are all proven to contribute to mental distress.
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"As more people come face to face with these problems, there is no doubt that we will see an increase in depression, anxiety and stress. We need to make sure that these aren't the first steps up a one-way street by providing mental health support when people need it."
