Two young people in the team will meet with Blears each month, while a larger group of seven will meet with her every three months.
The aim is to offer Blears young people's perspective on policies ranging from youth homelessness, urban regeneration and the Olympics legacy.
In between meetings the panel will meet among themselves and report back to Blears with any further ideas they have developed.
The first meeting took place this week, with items on the agenda including green spaces in urban areas.
All panel members are between 15- and 20-years-old and have been recruited after acting as young advisers to local policy makers.
Hazel Blears said: "My youth advisers panel will champion young people, their views and ideas. I can hear first hand how decisions in Whitehall might affect young people to ensure their voice is heard."
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