Labour has been urged to break a manifesto pledge to scrap youth rates of the minimum wage amid a dramatic rise in the number of young people out of work and education.

In a report sounding the alarm over a sharp increase in the number of 16- to 24-year-olds who are not in education, employment or training (Neet), the Resolution Foundation urged Labour to change course to avoid them being “priced out” of entry-level jobs.