Over three years, the Youth Contract will provide wage subsidies to get 160,000 young people into paid work as well as 250,000 new work experience placements.
In addition, there will be at least 20,000 more incentive payments to encourage employers to take on young apprentices.
There will also be a new programme to help the most disengaged 16- and 17-year-olds, to get them back to school or college, onto an apprenticeship or into a job with training.
Those not in work who do not engage with the programme will be made to attend work training with Jobcentre staff.
Anyone who drops out of a work experience placement or a subsidised job will lose their benefits.
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