An "epidemic" of loneliness could be costing employers billions of pounds a year, a new report warns.

Research by the Co-op showed that people who were lonely were more likely to leave their job within a year.

The study suggested that firms were neglecting the problem rather than offering support, adding that employee turnover caused by loneliness was costing £1.62 billion a year, while cutting productivity by £665 million.

Rufus Olins of the Co-op, said: "For the first time this report puts a figure on the cost on loneliness to business.

"It is clear that employers should not only be aware of the issue, but should also be prepared to support employees.

"We already know from research we published last year that ordinary events in life have the potential to disrupt our social connections and can lead to individuals becoming lonely even though they may be surrounded by others.

"This rich insight clearly shows that there is a role for businesses and that is why we are beginning to develop support for colleagues who are lonely and will be sharing our learnings with others.

"By implementing well-thought-out strategies, employers can not only support individual colleagues but also make a positive impact on their bottom line."