Employers have been warned that worsening economic difficulties brought about by the credit crunch could lead to a sharp increase in mental health conditions.

Tim Cooper, managing director of charity Shaw Trust, says employees will find the dual strain of household bills and increasing pressures to meet targets at work difficult to cope with.

He said: "Any one of these concerns are likely to increase stress levels, but combined they will almost certainly result in a stark increase in anxiety, which can in turn act as a trigger for a variety of mental health conditions.

He added: "Employers can help by being aware of the early warning signs and creating a more relaxed atmosphere at work to help ease some of their worries."