The Keep Britain Working Review report reveals a 1.2m increase in young people with work limiting health conditions.

Secretary of state for work and pensions, Liz Kendall, said: ‘We must do far more to help people stay in work and get back quickly if they fall out. That's why, as part of the reforms in our Pathways to Work Green Paper and our Plan for Change, we are making a decisive shift towards prevention and early intervention.  

‘We want to help more employers to offer opportunities for disabled people, including through measures such as reasonable adjustments, and we are consulting on reforming Access to Work so it is fit for the future.'

Nearly one in four people out of work due to ill health are under 35, while young people with mental health conditions are nearly five times more likely to be economically inactive compared to others in their age group, according to the analysis.

The report says there are 8.7m people in the UK with a work-limiting health condition, up by 2.5m (41%) over the last decade, including an additional 1.2m 16 to 34-year-olds and 900,000 50 to 64-year-olds.

The Government said almost 70,000 people with mental health issues were helped back into employment last year as part of the expansion of the Talking Therapies programme, up more than 60% on the year before.  

Earlier this week, DWP secretary of state Liz Kendall announced reforms to benefit payments designed to support people to return to the workplace.

Christopher Rocks, lead economist and head of the secretariat for the Commission for Healthier Working Lives, at The Health Foundation said: ‘With more than 4m working-age people in employment now reporting a health condition that limits their ability to work, it is vital for Government to deliver a decisive shift towards prevention and early intervention. However, the benefit cuts announced earlier this week risk further eroding trust in the welfare system and worsening people's health.'