The government plans to expand the programme, which is designed exclusively for 16-year-olds, from 30,000 places in 2012 up to 90,000 by 2014.
Based on analysis of last year's pilots, involving 8,500 young people, the government says that of £200m it will have invested in the scheme by 2014, it could reap as much as £400m in benefits to communities.
The return ratio is estimated based on the value of community work carried out by young people on the scheme and their improved educational outcomes, as well as an approximation of the wages that young people could earn in the future.
"More than £10m in increased earnings, including almost £3m in increased tax revenue, can be expected from increased confidence, improved leadership and communication," the report said.
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