Government cuts to youth services were condemned by the Bishop of Blackburn today as unemployment among 16 to 24-year-olds across the country hit record levels.

The Rt Rev Nicholas Reade, warned that a generation risked being lost to "cynicism and hopelessness".

He was speaking in the House of Lords after official figures revealed the number of 16 to 24-year-olds looking for work increased by 67,000 in the quarter to September to 1.02 million, the worst total since comparable records began in 1992.

The Bishop said: "We all know from previous recessions that the impact on young people, particularly their morale, their self respect, that it lingers long after the recession has ended and creates ongoing social problems."

He told work and pensions minister Lord Freud: "Would you agree that instead of decimating youth services at this time, the Government should be seriously investing more in such work so that we have some chance of avoiding the loss of a whole generation to cynicism and hopelessness."

At Lords question time, the minister replied: "What we are trying to do, this Government, is concentrate on the really effective solutions for young people."

In East Lancashire youth unemployment bucked the national trend, falling slightly by 30.