The Coalfields Task Force report paints a bleak picture of ill-health, social deprivation and poor educational standards in former mining areas such as the Midlands, South Yorkshire and the north east of England.

The 92-page report recommends a cross-governmental department approach and greater use of European and Lottery funds if no more public money can be found to address the situation.

It highlights the fact that former pit areas have received a third per head of Lottery cash compared to London, and substantially less than the national average.

John Prescott: "Using existing cash more efficiently not enough"

Addressing the conference to launch the report, at Ollerton Miners' Welfare, near Mansfield in Nottinghamshire, Mr Prescott said the government would make a detailed response to the report in October.

But he promised that government departments would carry out a major review of the report's recommendations to boost opportunities.

He said he could not pre-empt spending announcements due to be made by the Chancellor, Gordon Brown, on Tuesday but he accepted that it was not enough to merely use existing cash more efficiently.