The Disability Rights Commission (DRC) says two-thirds of the businesses it surveyed had no procedures in place to manage people with mental health problems.

It wants the Government - which is trying to get more people off disability benefits and into work - to support a free helpline for employers on how to deal with the issue.

Bert Massie, chairman of the DRC, said:

"We need to recognise that mental ill health is now operating as a badge of exclusion from the labour market in the same way that race and gender once did.

"If the Government's welfare reform programme is to succeed it needs to tackle this lack of confidence among employers about recruiting staff who have a mental health condition."

The DRC's concerns are echoed by the Confederation of British Industry (CBI) - we reported last week on its research, which urges the Government to do more to improve conditions for employees with mental illnesses.