Young people are more likely to have their out-of-work benefits reduced or stopped than any other age group, according to a new report.

More than a third of all sanctions on out-of-work benefit claimants have been against young people aged under 25, a study by the Policy Exchange has found.

The think tank said official government data shows people aged 16 to 25 account for 35% of total sanctions despite making up less than a fifth (17%) of total jobseekers allowance claimants.

Steve Hughes, author of the report, said: "All the evidence shows that being in work at a young age has a strong bearing on employment later in life.

"That is why the government should look at changing the way benefits are paid and employment advice is offered to people aged under 25 who are not in work and education.

"A dedicated job centre will intensify the level of employment support and advice offered to younger generations during a critical stage of their lives."

The UK Government said sanctions are only used as a last resort.

A Department for Work and Pensions (DWP) spokeswoman said: "Youth unemployment is down by more than 300,000 since 2010. But there's more to do.

"Our Jobcentre Plus support for schools initiative will provide pupils and their parents with advice on the best routes into work experience, traineeships and apprenticeships.

"We are committed to getting more young people into work and sanctions are only ever used as a last resort for the small percentage of people who don't take up help."

The Scottish Government will soon receive devolved powers over a number of aspects of the welfare system which are currently administered by the DWP.

A public consultation on the design of the new social security system is under way.

Speaking at a visit to a food charity in Aberdeen, social security minister Jeane Freemain said: "This is the biggest transfer of powers since devolution. And it is complex.

"But once they're fully devolved - a lengthy process expected to take a few years - these new social security powers will account for around £2.7bn - or 15% of the total Scottish benefit bill.

"So it's incredibly important that the people who use or could use the social security system - which actually is all of us - have a say in shaping it.

"We want to hear about people's experience of the system as it is now and how the Scottish Government can improve things."

The Scottish Government hopes the first payments from the agency will be made in 2021.