By HUGO DUNCAN PUBLISHED: 16:12, 30 May 2012 | UPDATED: 22:57, 30 May 2012 Poor educational standards and a benefits culture in the UK pose one of the biggest threats to the recovery in the UK, according to the European Commission. The report found that the failure to make work pay for single mothers and those on benefits meant nearly two million children were growing up in idle households where no one has a job - making it less likely that they will ever work. But some of the biggest challenges facing Britain in the long-term were around education, unemployment and welfare. âThere is a persistently large number of functionally illiterate and innumerate adults in the UK, usually with no qualifications,â the report said. âThe UK continues to have to have too many people with low skills. The economic costs of this problem are likely to increase over time if it is not effectively addressed.â Brussels said it posed a major risk to the health of the British economy as the country - reeling from the first double-dip recession since 1975 - struggles to compete on a global stage. <img src='http://i.dailymail.co.uk/i/pix/2012/05/30/article-2152209-066493CB0000044D-971_233x368.jpg'> When he was merely Tory leader, David Cameron was 'shot in the back' by a teenage thug as he visited a crime-ridden council estate in Manchester. Illiterate school-leavers and the workshy remain a serious problem Read more: http://www.dailymail.co.uk/news/art...sues-warning-annual-report.html#ixzz1wS8XWuwN Coming to you soon, America. Or is it already here?