Organisations offered 2,200 to support teenagers into work

The £126m scheme will be open to charities and businesses across England that offer tailored support to teenagers out of work or education, with no good GCSEs who are at risk of long-term disengagement.

The organisations will be offered money on a payment-by-results basis and will be eligible for up to £2,200 for every young person they help.

Announcing the funding, Deputy Prime Minister Nick Clegg said: "Sitting at home with nothing to do when you're so young can knock the stuffing out of you for years.

"This problem isn't new, but in the current economic climate we urgently need to step up efforts to ensure some of our most troubled teenagers have the skills, confidence and opportunities to succeed.

"Many of them will have complex problems: truancy, teenage pregnancy, a lack of GCSEs and health problems. So helping them onto their feet will not be without challenges and government cannot do this alone."

Organisations will receive an initial payment for taking young people on, followed by subsequent payments when they show progress, including remaining on training programmes, undertaking apprenticeships or holding down jobs.

Local authorities will be expected to work with successful providers to target young people in their area who will benefit most.

Children's minister Tim Loughton said: "We are committed to supporting those 16- and 17-year-olds who have found it hard to find training or work upon leaving school.

"We want them to receive personal, targeted support from experts who will give them the confidence, skills and motivation to stay in education or find a job with training.

"We are looking forward to receiving some innovative ideas that really work from experienced organisations in all sectors."