Despite signs of economic improvement, the number of people claiming welfare benefits rose by 13,000 in the first three months of this year.

In total, 426,000 people now live on welfare – the highest figure since the end of the 1990s. There was a notable rise in the number of youngsters claiming welfare.

One reason for this is likely to be the growth in short-term employment contracts, which mean youngsters are unable to build up rights to jobless benefit (ww), the national statistics office CBS said.

People whose entitlement to jobless benefit has finished are also transferred to the welfare system, boosting the numbers as long-term unemployment grows.