Fifth of children are raised by families living on benefits

In some regions almost half of all youngsters are in households claiming out-of-work benefits.

Britain has a higher proportion of children in such households than anywhere in Europe.

The vast majority are living in homes in which nobody is even looking for a job.

Experts say these children risk drifting into a life of joblessness, poverty, ill-health and crime.

Those with parents who do not work are less likely to go on to get a job themselves or take part in education or training.

The Conservatives, who uncovered the figures using Parliamentary questions, said the level of joblessness was unacceptable when an expanding economy has produced record levels of employment.

Four out of five jobs created under Labour have gone to foreigners.

In all, more than 2.2million children are growing up in households dependent on out-of-work benefits - one in five of all youngsters.

The worst area is Manchester Central where an astonishing 49.2 per cent of children have parents claiming handouts.

This is followed by Liverpool Riverside with 47.6 per cent and Poplar and Canning Town in East London with 46.8 per cent.

"This is a shocking indictment of the Government's failure to tackle child poverty," said Tory work and pensions spokesman Chris Grayling.

"Gordon Brown and his ministers are always claiming how much they have done - but the reality on the ground tells a very different story.

"Worklessness is endemic in many communities, but even so, the fact that nearly half the children brought up in some areas come from homes entirely dependent on benefits is a figure that should bring shame to ministers, particularly given the fact that so many people have come to work in Britain from overseas in the past ten years."

Mr Grayling also highlighted figures suggesting that child poverty is rising again, despite the Government's pledge to bring it to an end.

There are 2.8million children living in poverty when measured before housing costs are taken in account - the Government's preferred method. After housing costs, there are 3.8million. Last year, the figure rose by 100,000 before housing costs and 200,000 after.

Yesterday Labour's former welfare minister Frank Field claimed the party's approach to welfare risked costing it the next election.

The outspoken MP claimed Gordon Brown's "serious addiction to means-testing" - which means families who earn more lose key benefits and tax credits - had led to the "destruction of self improvement".

In a speech to charity bosses in London, Mr Field said four out of five families with children had their living standards determined "not by working harder or gaining qualifications, but by the swish of the Chancellor's pen".

"If policy is pitted against human nature, and in particular the self-interest of individuals and families, it is only a matter of time before the Government's strategy is defeated either at the hands of the Government itself, or failing that, by the electorate," he said.

Welfare reform has emerged as a key battleground between the two main parties ahead of the next election. The Tories insist the Government's New Deal programme is failing to get people back to work.