Pay employers for taking on interns from disadvantaged backgrounds, says Demos

Access All Areas uses research collected by the think-tank Demos and was published by the Foyer Federation, a charity that supports young people at risk.

The report says that such "paybacks" would improve the quality of internships and work experience placements as well as further opportunities for people such as care leavers and young offenders.

The move would also help improve the non-graduate talent pool available to firms and public sector bodies, and save money by reducing the Neet (not in employment, education or training) population.

Demos proposes a cash incentive of between £1,000 and £5,000 be paid to employers for every intern who subsequently finds full-time work within a year. Demos estimates that, each year, a young person classed as Neet costs the state £120,000 a year.

Jane Slowey, chief executive of the Foyer Federation, said: "We believe all young people should have the opportunity afforded through internships to identify, develop and promote their talents. That includes the 10,000 young people using Foyers each year, whose aspirations to shape their lives in meaningful ways are not always met by the opportunities available to them."

The National Care Advisory Service (NCAS) has also welcomed the proposals, saying they would help "level the playing field" for care leavers in accessing real workplace experience and opportunities.