Recession will cause an "epidemic of mental distress" as vulnerable individuals buckle under the strain of unemployment, repossession and escalating debt, Liberal Democrat leader Nick Clegg warned today.
Mr Clegg put forward proposals to help those affected, including training for debt counsellors to spot the signs of mental ill-health.
He warned that some people will react to the stress of economic hardship by going on spending binges and called for a new right to freeze your own credit rating, in order to help people avoid taking on damaging new loans and debts at a time of weakness.
Banks could help patients with mental health problems by monitoring their accounts, with their permission, for signs of unusual spending.
Mental ill health can make it harder for people to manage their money and some conditions are closely associated with compulsive spending that can cause serious financial problems, he said.
Speaking at the University of Sheffield, Mr Clegg said: "It is the hidden tragedy of a recession that mental illness will surge as people's jobs and homes are increasingly under threat.
"Every 11 minutes, another family will face the severe anxiety and mental strain of having their home repossessed.
"People shouldn't have to face these difficult times on their own. Those professionals advising people in financial trouble need to be trained to spot signs of mental health problems and be aware of where people can get help.
"If people know that their mental health means they are more likely to go on spending binges, why shouldn't they have the right to voluntarily add extra controls on their account and credit ratings?
"At a time when the limited mental health services available on the NHS are already under immense strain, ministers must prepare now for this profound consequence of the recession."
Measures proposed by the Lib Dem leader included:
:: Training for debt counsellors to identify people with mental health problems and for therapists to spot debt problems and know where to direct patients for appropriate financial advice;
:: A maximum waiting time of 13 weeks for mental health patients to see a therapist;
:: Allowing individuals to freeze their own credit rating so no new loans or credit could be given to an individual;
:: New procedures for banks to help customers who have disclosed their mental health problems, including allowing for accounts to be voluntarily monitored for unusual spending and for a system of joint authorisation from a friend or support worker.
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