Poor literacy and the lack of basic skills caused by unrecognised dyslexia costs the UK economy £1 billion a year, charity campaigners said today.

The Dyslexia Institute estimated that the economy lost £2.75 million a day because dyslexics were not being given the help they needed to fulfil their potential.

The extra costs linked to unrecognised dyslexia include unemployment, dealing with youngsters excluded from school and prison and probation services.

The institute pointed out that there was a much higher incidence of dyslexia in the prison and probation population, those excluded from school and the long-term unemployed compared with the population as a whole.

They conservatively estimated that based on the 10% population norm for dyslexia, a minimum of £368 million a year was spent on "unidentified dyslexics" in these sectors.

This cost alone could be substantially reduced if these dyslexic individuals were identified at an early age and given the appropriate support, they said.

Director General of the CBI Digby Jones said: "Providing the right help early in a child's life can help prevent major difficulties later.

"We should be investing in these children now which will reap rewards for the individual, the public purse and contribute to the competitiveness of the UK."