Back-to-work schemes run by the Work Programme and Jobcentre plus are ineffective for those with mental health problems and an alternative is needed, the charity Mind has said.
Of people receiving support primarily because of mental health problems, 83% of those surveyed said their back-to-work programme had made their mental health worse or much worse.
The survey of 439 people using the services by Mind found that just 5% of people with mental health problems had actually been helped into work.
Support from either mental health services or GPs had been needed by 86% of respondents and 24% had been hospitalised or sectioned while on the back-to-work support programmes.
Feeling less able to work as a result of the schemes was reported by 76% of respondents and 82% said their self-esteem had got worse or much worse as a result.
A further survey of 200 people whose main reason for needing support wasn't a mental health issue found 81% had their mental health worse, while 86% had worse self-esteem and 86% had worse confidence.
Mind has called for an alternative scheme with specialised support for those with mental health problems.
The current schemes include CV writing classes and confidence building workshops, failure to engage with them can lead to benefits being stopped.
Paul Farmer, chief executive of Mind, said: "It's perverse that programmes which are supposed to help those who are unwell and struggling to get into work are having the opposite effect, damaging their health.
"These schemes are not appropriate for people with mental health problems. If someone is out of work because of depression and anxiety, simply asking them to attend a CV writing course is a waste of time and money, as it doesn't address the real problems they are facing.
"Forcing people to engage in these activities, and cutting their benefits if they struggle to do so, is inappropriate and counter-productive. This approach assumes people don't want to work and the only way to motivate them is to withdraw financial support, which only causes greater anxiety and stress, and makes returning to work less likely.
"We need everyone who is out of work because of their mental health problem to be placed onto new, locally commissioned schemes which reflect individual and local needs. Such a scheme would take a personalised, tailored approach which really understands and addresses the complex nature of mental health problems and how they can impact someone's ability to find and keep a job.
"Most people with mental health problems who are out of work want to work and would be able to do so with the right support. Improving back-to-work support, including ensuring employers see the value in recruiting and supporting staff with experience of mental health problems, would help hundreds of thousands of people move into employment."
