Shadow work and pensions secretary Chris Grayling said the proposals are aimed at claimants aged between 18 and 21.

They include intensive programmes of work-related activity for those who don't find a job within three months, full-time community work programmes for those who are out of work for a year and tougher limits on the time young people can spend at home on benefits.

But Stephen Timms MP, Labour's minister for work, said: "Let's look at the facts - most young people find a job within six months. Spending money on a new costly scheme after three months, like the Tories suggest, would be a waste of public cash as our current regime gets 85 per cent off benefits within six months."