A JOBLESS generation of young people is costing the North-East hundreds of millions of pounds in lost earnings and crime, a groundbreaking study has revealed.

Youth crime is costing the region £83 million every year while educational underachievement costs an astounding £945 million in lost earnings.

And around £5.4 million is lost every week on forfeited earnings and benefit payments of unemployed 18 to 24-year-olds in the region.

The shocking statistics were published today in a report commissioned by The Prince's Trust and The Royal Bank of Scotland Group (RBS).

It recommends that more investment is needed to help young people in the North-East's deprived communities who are not in employment, education or training.

David Beavis, North-East regional director of The Prince's Trust, said: "Almost one in five young people are out of work, education or training. Only by helping young people in the North East develop new skills and get back into work can we make a real investment in our region."

The report, entitled The Cost of Exclusion, reveals that every year an estimated 70,000 school-age offenders enter the youth justice system across the UK, costing the North-East £83 million every year.

It also highlights that there are more than 26,000 young people in the North-East with no qualifications, costing the region an astonishing £945 million in foregone earnings.

It also reveals that the region has had the highest proportion of unemployed 16 to 24-year-olds in the country at every five-year period since 1979.

David Fenton, RBS Economist, said: "A strong economy and low unemployment continue to mask the true cost of youth exclusion. "With the right support, this lost generation can make a significant contribution to the health of the UK economy."

Last year, The Prince's Trust helped more than 4,000 young people in the region to gain skills and find work last year. Three-quarters of all young people supported by The Prince's Trust last year moved into work, education or training.

Some of the youngsters the charity has helped include Rebecca Burns, 22, from County Durham, who suffers from Chronic Fatigue Syndrome.

Through the Trust's business programme she was able to channel her artistic skills to set up Melting Pot Arts.

Other youngsters the charity has helped are Amy Colclough and Kelly Heaviside, both 23, from Stockton-On-Tees, were unemployed until they started Urban Kaos - a company teaching dance, health and fitness in schools.

Two years on, the pair are working with hard to reach young people, secured a local authority contract and set up a youth dance team which reached the finals of a national competition.