The Commission on Youth Unemployment, set up by the Association of Chief Executives of Voluntary Organisations (AVECO), identified 600 local unemployment ‘hotspots’ across 152 local authority areas. One in five young people are not in employment, education or training (Neet) and the commission says this will cost the country £28bn over the next decade.

Among the recommendations, the report calls for employment zones to be created with all local groups coming together to pool their resources, including local councils. A new mentoring scheme for young people, where under-25s who have been in work for a year mentor others to help them gain employment, should also be established.

‘Britain faces a youth unemployment emergency. This is a crisis we cannot afford. Government have set the right goal - abolishing long-term youth unemployment - but we will need big change if we are to achieve it,’ commission chair and former local government minister David Milband MP said.

‘Young people, Government, communities and employers will all need to up their game if young people are to succeed in a radically changing jobs market. Our report sets out a practical routemap for how they can do precisely that. The crisis of youth unemployment can and must be tackled now. With action we can make a real difference across Britain.’