A leading team of economists says the New Deal to help the long-term unemployed has not benefited as many people as the government claims.

In a report published on Wednesday, the National Institute of Economic and Social Research broadly welcomes the New Deal, but accuses ministers of over-estimating the number of jobs created.

The NIESR survey is the first comprehensive independent study of the New Deal.

It finds that ministers' claims that the scheme has put a quarter of a million people into work are exaggerated.

Many would have found work anyway at a time of economic growth, it finds.

The report is published as the government announces the latest unemployment figures, which are expected to show a big fall in the number of people without jobs.

Welfare to Work

Prime Minister Tony Blair is expected to make much of the figures, saying Labour has put a million people into work.

He is also expected to defend the New Deal against the accusation that it does not create genuine jobs.

Earlier this week the Commons Education and Employment Select Committee said the scheme was inefficient and expensive.

Employment minister Tessa Jowell told the Commons committee that £650m had been spent finding jobs for 210,000 people.

The New Deal is part of the government's Welfare to Work strategy. It gives jobseekers aged 18-24, 25-plus and those with disabilities a chance to develop their potential, gain skills and experience and find work.