The £290m Future Jobs Fund offered employment to 16- to 24-year-olds who were out of work for six months or more.
Official data shows that between October 2009 and May 2010 40,720 young people got into work through the scheme.
The news comes as data from the Office for National Statistics shows that the number of long-term unemployed young people is up by more than 40 per cent in the past year.
The wider Young Person’s Guarantee, of which the Future Jobs Fund was one element, is also set to be phased out by the coalition government.
As well as the Future Jobs Fund, it included:
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