Commenting ahead of the Work and Pensions Secretary's announcement on a shake-up of the benefits system, David Frost, Director General of the British Chambers of Commerce, said:

"It is an economic imperative that the government ensures young people unnecessarily out of work receive the skills that they need to join the UK's labour market. Achieving this will also require a dramatic reform of the benefits system to incentivise more young people to move off the dole and into work.

"Relying on migrant labour to grow the economy is not sustainable. So long as hundreds of thousands of UK adults remain unwilling or unable to work businesses will have no choice but to employ keen and enthusiastic foreign workers.

"Whilst we welcome the proposals announced today, the Government has promised private sector led solutions in the past. Now is the time to turn words into action."