The government is concerned at the drag on the economy caused by more than 200,000 "Neets" - those youngsters not in education, employment or training.

This week's Queen's Speech will include a bill to raise the education leaving age from 16 to 18.

The benefits system will also be changed to discourage dropping out.

The government wants to tackle the longstanding problem of teenagers leaving school and then failing to find a job or training.

Apprenticeships

International comparisons show that the UK has one of the worst records in the industrialised world for the proportion of 16 year olds dropping out of education and training.

The plans to be outlined by the government for England are designed to provide more incentives to stay in education and training - and to introduce disincentives for leaving.

The leaving age for education will be raised to 18 - with the threat of fines or community service from 2013 for non-compliance.

And it is expected that there will be tighter restrictions on claiming benefits for those who have not been in education or training.

There will be an attempt to identify at an early age those youngsters who, through drug or alcohol misuse or pregnancy, might become part of the "Neets culture".

They will be assigned counsellors to offer them advice about their future plans.

There will also be an expansion in the number of apprenticeships available - with an additional 90,000 places on top of the existing 150,000.

Flexibility

And there will be a more flexible approach to when youngsters can start courses, with plans for more to be available from January for those who failed to register in September.

In a speech to the Fabian Society in London, Mr Balls emphasised the importance of changing attitudes towards the importance of education for this age group.

"We need to start now by engendering a culture change in young people, their parents and the education and employment system through creating the balance of rights and responsibilities that underpin a higher compulsory leaving age," said Mr Balls.

"We need to intensify support so that long-term Neets are offered a way back into work or education. I look forward to a time when no young person will be long-term Neet."

The Conservatives argue that the age group in question should be those aged 16 to 24.

This would mean there were more than a million Neets.