The Chancellor was today urged to tackle the record levels of youth unemployment in next week’s Budget amid warnings a generation of talented youngsters could be lost.

The TUC said the current “cut-price, poorly-targeted and unpaid” work experience schemes were not helping enough young people find jobs.

Ahead of new unemployment figures today, the union organisation called for a guarantee of paid work or training for any youngster who has been out of work for at least six months.

A new youth credit should be offered to all 16 to 24-year-olds to boost training, work placements and the chance of getting a better job, said the TUC.

In its submission to the Government ahead of next week’s Budget, the TUC said the economic case for a change of direction in Government policy was now “overwhelming.”

General Secretary Brendan Barber, pictured, said: “Over the last year growth has flat-lined, more people are out of work and government borrowing has risen sharply as a result. The Government’s austerity strategy is plainly not working.

“So rather than carrying on with self-defeating cuts, the Chancellor should do what’s right for the economy and prioritise tackling our jobs crisis and getting businesses to invest more of the £724 billion they are currently sitting on.”