The 189,000 teenagers not in education, employment or training

Almost one in ten youths aged 16 to 18 are classed as 'Neet' - 'Not in education, education or training'

Almost 200,000 teenage drifters are living on benefits after dropping out of work and education, official figures revealed.

Almost one in ten youths aged 16 to 18 is classed as 'Neet' - 'Not in education, employment, or training' - despite billions of pounds being spent on welfare-to-work schemes.

Numbers were down slightly on last year, but up nearly 30,000 on 1997 - the year Labour came to power.

Business leaders branded the figures 'extremely worrying' and accused ministers of failing to equip school leavers with the skills and attitudes needed for work.

Ministers were also warned that the economic slowdown could cause Neet numbers to rise further in future.

Studies have suggested that each Neet costs the taxpayer an average of £97,000 during their lifetime.

The high cost is a combination of unemployment benefits, handouts to mothers, the costs of clearing up crime and their failure to contribute to society in the form of taxes.

Some 189,000 school leavers - or 9.4 per cent - were registered Neet in 2007, against 161,000 or 8.9 per cent in 1997, according to yesterday's figures from the Department for Children, Schools and Families.

Young men were more likely than women to be left behind, with 104,000 in the Neet category.

The statistics also showed that 22.9 per cent of boys aged 16 to 18 - compared to 19.6 per cent of girls - are in jobs, but not in any form of education or training, although they may be in jobs.

Labour is estimated to have spent £3billion since 1997 on the flagship New Deal scheme, where businesses are paid to take on unemployed workers as a way of getting them back into the jobs market.

But many jobless have simply drifted from scheme to scheme.

In a direct appeal to school leavers, Education Maintenance Allowances were introduced at a cost of £500million a year. These are weekly payments into students' bank accounts if they agree to stay on at school or college after 16, but critics have claimed the cash is too often spent on socialising.

Labour has now drawn up legislation which will raise the education or training leaving age from 16 to 18 from 2015.

Tory universities and skills spokesman David Willetts said yesterday: 'The Government's initiatives, from the New Deal to new apprenticeships, are just not working.'

Liberal Democrat schools spokesman David Laws said: ' Given that the number of Neets has actually gone up since 1997, ministers cannot take any pride in these figures.

'One of the Government's early pledges was to reduce the number of Neets. They have clearly failed to do so.

'With the economy slowing, there is a real risk that this category is going to further increase in size.'

David Frost, director-general of the British Chambers of Commerce, said: 'Whilst the overall increase in participation is good news, it remains extremely worrying that despite over half a million vacancies in our economy, there are still so many young British people not in employment, education or training.'

He added: 'The Government is failing our youth by not providing them with the essential skills and attitude required to become productive members of society, as well as British business, who struggle to find a suitably skilled and engaged workforce.'

Schools Secretary Ed Balls said 'good progress' is being made ahead of Government reforms to raise the leaving age.

'It is really encouraging news that the number of young people who are not in employment, education or training has fallen again,' he added.

'By 2015, all young people will stay in education or training until they are at least 18.'