Sharp rise in the number of unemployed young people

The number of young people unemployed and not in full-time education now stands at 663,000. This is up by 62,000 young people over the past three months.

Martina Milburn, chief executive of The Prince's Trust, estimated that youth unemployment now costs the state £23m per week in jobseeker's allowance.

But she said the costs to young people are far worse.

"The impact on unemployed young people - who all too often face a downward spiral towards a loss of self-confidence and even crime - is immeasurable," she said.

Meanwhile, the new Secretary of State for Work and Pensions, Yvette Cooper, claimed that new claims for jobseeker's allowance have fallen for the second month in a row, despite rising unemployment.

But she admitted the government must do more.

"It is vital we do everything we can both to help people into work right now, and to prevent long term unemployment scarring families and communities for the future.

"That is why we are investing £5bn extra into helping jobseekers - creating jobs for young people and those in the hardest hit communities, delivering training and skills, and providing 16,000 extra frontline staff in Jobcentres across the country," she said.