Speaking at the Institute of Public Policy Research, Mrs Hodge said young people would be better off at home watching television than at a club that just offers 'a place to go'.
She said, 'Just hanging out not only does nothing for young people, but the research tells us it can have negative outcomes.'
A study carried out by the Institute of Education at London University on behalf of the Government analyses the impact of youth activities on a group of several thousand people born in the 1970s. It is due to be published in late February alongside the Green Paper for Youth.
Mrs Hodge said young people who spent time in places that lacked focus and organisation were 'more likely to have poor educational outcomes, more likely to offend and more likely to end up as adult smokers'.
But children's organisations expressed concerns over the unpublished findings.
Dr Ute Navidi, director of London Play, said, 'Meeting up with friends is crucial for today's young people, whose social interaction is often confined to the school environment and mobile phone texting.'
Mrs Hodge estimated that around 25 to 30 per cent of young people in England did not participate in organised activities and were often seen as a problem by their local communities. 'One of the challenges we face is how we can engage this group in activities they enjoy.'
But Adrian Voce, director of the Children's Play Council, warned, 'Children's free time needs to be respected and they should have choice over this area of their lives. Too much structure will put off those children who would most benefit.'
Anne Longfield, chief executive of 4Children, said that the stereotypical old-style youth provision, with a pool table in the middle of the hall, had changed dramatically over the past 20 years. 'It's now more targeted. But there are issues with quality and gaps in provision.'
