Town and cities in the north of England have the highest proportion of 16 to 24 years-olds not in employment, education or training (Neet), a new study has revealed.

The report, from the Work Foundation and the Private Equity Foundation published on 4 November, uncovered ten regional 'blackspots' – where at least one in five young people are Neets.

Eight of the blackspots are in the north, the research indicated. Grimsby, Doncaster, Warrington and Wigan face significant challenges with local Neets, with 25% Neet rates. Major urban centres such as Birmingham, Swansea and Newcastle have around 20% of youngsters considered Neet locally.

The recession had exacerbated inequalities with the largest increases in Neet rates found in cities already experiencing high levels, the authors found. This situation had been compounded by rapidly rising unemployment resulting in fewer entry-level jobs with young, less experienced workers being more vulnerable to job losses.

Neil Lee, author of the report and senior economist at the Work Foundation, said: 'The number of young people who are Neet is one of the UK's most serious social problems.

'For a young person, being out of education, employment or training can have major ramifications, including long-term reductions in wages and increased chances of unemployment later in life - as well as social or psychological problems arising as a result of sustained unemployment.'

The report makes ten recommendations, suggesting improvements to strategies and directions, commissioning and funding, delivery of services and enablers.

Last month, the Local Government Association claimed that more than 40%of the annual £1bn that could be saved by tackling England’s escalating ‘Neets’ crisis through devolved programmes would come from savings to housing benefit budgets.