Speaking at a seminar for youth and Connexions workers, Dave Prentis also called for the £4.83 development rate of the minimum wage to be scrapped.
He said: "With nearly one million young people unemployed, it makes no sense to start cutting funding for vital services such as Connexions, youth workers and youth support services.
"These cuts will leave many young people without the help they need to take their first steps onto the jobs ladder, creating a 'lost generation'."
He added: "Young people should not be left to pay twice for a recession they did not create – with dwindling job opportunities and less services to help get them back on their feet."
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