Mandelson said the holiday would be on Tuesday 5 June 2012 and the late May bank holiday would be moved to Monday 4 June to allow people to enjoy a long weekend.
And the campaign for a Community Day bank holidaywelcomed the announcement. A spokesperson for the campaign said: "This is the perfect opportunity to introduce a new bank holiday and there is no reason why this extra day off should not become a permanent fixture.
"The Government should capitalise on the community spirit around the Queen's Diamond Jubilee by introducing a new Community Day bank holiday dedicated to volunteering and community work."