Unemployment figures in parts of the north are up to 10 times higher than in southern areas, according to a new report.

The Institute for Public Policy Research (IPPR) said on Friday that the government is still some way short of achieving its goal of full employment.

Ministers want at least 80 per cent of people of working age to be in employment and have hit the target in several areas.

However the study showed that other regions are still "lagging" behind as the North/South divide remains wide open.

The report revealed that in parts of the North East, up to 22.5 per cent of the population is claiming welfare benefits, whereas in Wokingham in Berkshire, the figure is just 2.6 per cent.

In Middlesbrough and Hartlepool, only one in three people with no qualifications have a job, despite the national average being more than half.

IPPR North research director John Adams said ministers must help provide more jobs in deprived regions, as well as more incentives to work.

"With a renewed commitment and a concerted effort, full employment might soon be within our grasp. The challenge may seem great, but the rewards would be enormous," he said.

"The government has placed a strong emphasis on welfare to work and skills policy.

"In particular, proposals to reform incapacity benefit could make a positive contribution in providing effective routes off benefits and into work.

"However, these initiatives will not be sufficient to tackle worklessness in poorer regions. People in these areas want to work, but to achieve this more jobs are needed in areas which have very low employment rates."