The number of unemployed people unable to claim jobseeker’s allowance has smashed through the million mark for the first time ever.

The proportion of the unemployed not receiving JSA has soared by 28 per cent in the last 18 months in England and Wales, according to the Local Government Association (LGA), which represents local councils.

And councils are having to introduce schemes to help the jobless into work because those not receiving JSA get no central government help — even though the councils’ own resources are being savagely axed.

The association is demanding ministers devolve national education, skills and employment schemes to local areas.

LGA chairman David Sparks said so-called unemployment headline figures hide the plight of “our most vulnerable residents who are falling through the cracks.

“Too many are let down by national job schemes which are unable to identify or help them because they have not signed on at their local Jobcentre Plus.”

A Department for Work and Pensions spokesman claimed that unemployed people are getting the help they need.