The number of Britons out of work and claiming Jobseeker's Allowance rose by 20,100 to 864,700 in July – the largest monthly rise for over 15 years.

The latest results from the Office for National Statistics revealed the sixth consecutive monthly rise in the number of benefit claimants and the highest total since May of last year. The official rate of unemployment is now 1.67 million.

The manufacturing sector was particularly hard-hit, with jobs down by 37,000 in the latest quarter, to a record low of 2.88 million.

Yet despite the rise in benefit claimants, the total number of people in work actually rose by 20,000 between April and June to 29.56 million – the second highest figure ever recorded.

Meanwhile, the Bank of England has reported that inflation is now running at 4.4%, which is grim news for many British households as average earnings rose by just 3.4%.