'New unemployed must be helped immediately'.

REGENERATION schemes in former coalfield areas in England could contain lessons for the rest of the UK, a report says today.

But immediate action is vital to stop the new unemployed becoming reliant on benefits, the Audit Commission warned.

The report says:

Act quickly when unemployment strikes. Ifamajor industry sheds jobs local, regional and central government need to act quickly to help;

link jobs and people. Councils should not see job creation as an end in itself. A balance needs to be struck between securing employment opportunities and ensuring local residents are sufficiently healthy, skilled and motivated to take them up;

work with your neighbours.

Councils should not be fixated on creating jobs within their own boundaries;

work with partners. By co-operating local authorities and service providers can share facilities, employment possibilities and funding;

involve residents. Local people usually know best what will work for them.

An Assembly Government spokesman said: "We know that we are going to have to work harder than ever to help people and communities through these difficult times - and we are already working along the lines recommended by the Audit Commission and are determined to use past experience to work as effectively as possible."