The government is to outline a £1bn strategy to tackle youth unemployment, which it hopes will create over 400,000 jobs in three years.

Krystina Robinson from Middlesbrough is one of a million young people not in education, training or work, told reporter Luke Walton that none of her friends worked.

"The government is really on our case to get jobs but there isn't any to get," she said.

"It doesn't really look good... there's not enough jobs out there for young people."

Deputy Prime Minister Nick Clegg said that the new strategy, the youth contract, would provide hope to young people like Krystina.

Questions have been raised about how the scheme will be funded, with Labour claiming it is a "back to work scheme on the cheap", funded by a cut in tax credits.

But Mr Clegg said that the youth contract "isn't paid for by one particular tax change".

"I'm not denying for one minute, there will continue to be difficult choices to be made. It'll be spread as evenly as possibly," he said.

"But we've also asked those with the broadest shoulders - I've mentioned the bank levy, I've mentioned the tax avoidance, I've mentioned increasing capital gains tax and so on, and we will be doing more of that."