Ministers said they want schools, colleges and community services to offer help, as part of a the upcoming Mental Health Strategy. 

The plans follow an independent review, published on Friday (9 October) and led by clinical psychologist Professor Peter Fonagy, which found mental distress among children and young people had skyrocketed. 

It found social media, money problems and concerns about the future were some of the causes, alongside poor sleep and a weaker sense of connection with others. 

Referrals and diagnoses for ADHD and autism have also increased, but the review found prevalence of the conditions remained broadly stable. 

Secretary of State for Health and Social Care Yvette Cooper said: ‘Professor Fonagy's review has shown the importance of early intervention to address mental health and neurodevelopmental conditions and the huge distress these can cause.

‘It is clear that mental health services need to change to focus more on the early support young people need to stay in education or work or keep their lives on track.'

Professor Fonagy added: ‘Our findings show a system under immense strain, where diagnosis has increasingly become a very narrow pathway to finding support for distress caused by complex and wide-ranging factors. This review's recommendations offer a roadmap to shift from a diagnostic labelling model to a flexible, needs-led system.' 

Meanwhile, separate research for Alan Milburn's review found 24% of 16 to 25-year-olds not in education or work cited depression or anxiety, 22% autism and 18% another mental illness.

The government has also pledged £4bn to support children with special educational needs, with funding to help schools become more inclusive, improve access to specialist help and train teachers. 

Industry reactions

Thea Stein, chief executive of Nuffield Trust, said: ‘With compassion and rigour, this report brings much-needed focus to the growing levels of distress we see across the population, particularly among young people. 

‘Moving towards a system based on people's needs is sensible, but it can only work if support is actually there for people who need it. The knotty question for policymakers is how we decide who needs clinical care and diagnosis and who can be better helped through support in work, school and wider society.

‘For ADHD and autism, there is mounting evidence of how hard it is to distinguish symptoms, functional impairment and support needs, and the report raises concerns about the consistency and quality of diagnostic assessments for these conditions.'

Rebecca Gray, director of the NHS Alliance's mental health network, said: ‘Clarity on the real rise in mental distress and the factors behind unprecedented demand for help for ADHD and autism, and hope, because many of the proposed solutions are already in train.

‘The review strikes a welcome balance between strengthening prevention and early intervention while maintaining a clear focus on ensuring prompt access to high-quality specialist NHS mental health support.'

Helen Macdonald, senior clinical adviser at the British Association for Behavioural and Cognitive Psychotherapies, said: ‘Professor Fonagy's recommendations rightly highlight the need for high-quality assessments while recognising that people may experience ADHD, autism and mental health difficulties alongside one another.