Half those on Labour's 'New Deal' are back on benefits in a year

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More than 104,000 claimants aged under 25 who signed up to New Deal in 2006 returned to incapacity and disability payments, or applied for jobseekers' allowance, after one year.

Department for Work and Pensions figures also reveal that 61,000 youngsters, more than a quarter of those in the programme in 2006, returned to benefits after just six months.

Tory MP James Clappison, who uncovered the figures, said: "This is a long-standing failure of New Deal that the Government has simply failed to address."

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Tory MP James Clappison: 'This is a long-standing failure of New Deal that the Government has simply failed to address.'

New Deal - which also covers groups such as single mothers - was launched ten years ago and has cost taxpayers £3billion. Its aim is to offer "quality jobs, quality training and quality support" to jobseekers.

The scheme offers free personal advisers, careers advice and training courses costing £1,289 per participant.

News of the failure rate comes after Labour and the Tories launched new proposals to get the unemployed into work. Gordon Brown said he would give cash handouts for the jobless to retrain.

David Cameron said he would take 200,000 people off incapacity benefits, including forcing the longterm jobless into community service.