Working It Out, a pilot programme run by employment charity Tomorrow's People in east London, helps disengaged people aged 15 to 25 take part in work to benefit the community.
Of the 15 young people involved, 12 were in work, seeking employment, or in further education or training by the end.
The New Economics Foundation think-tank concluded that the project would save society 3 for every pound spent on the 113,000 project over five years. The savings come from lower welfare costs, increased tax income and reduced costs to the criminal justice system.
The programme has now been replicated in Glasgow.
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