A £10M project to boost the region's economy and help thousands of long-term unemployed back in to work was announced last night.

Deputy Prime Minister John Prescott said The Northern Way would aim to bring 100,000 people in the North back into employment by 2014.

It will help to bolster the Government's additional Pathways to Work pilot programmes, announced in December, in Durham, Tees Valley and Sunderland.

The Northern Way will provide pilot schemes to improve opportunities for people on incapacity benefit to find employ- ment and will be enhanced to address disadvantage groups, health and childcare issues.

Eight city regions, including Tees Valley and Tyne and Wear, have been identified as the key areas to generate growth in the North.

Development agency One NorthEast will put forward a programme to The Northern Way steering group in May, detailing future activity based on ten key themes.

Alan Clarke, One NorthEast chief executive, said: "It's a once-in-a-lifetime opportunity for the North to pool its strengths and work towards the greater goal of a world-class economy, coupled with a superb quality of life.

"One NorthEast will continue to lead the work on this important project with our region's strengths in fields such as the chemicals industry and scientific research and development playing a crucial role."

Bob Gibson, chairman of the North-East Assembly, welcomed the announcement and said it could have a significant impact on people's lives.

He said: "The pilot schemes have huge potential and I am particularly pleased they will be enhanced to address particularly disadvantaged groups.