Nick Clegg launches £1 billion package to tackle youth unemployment

Nick Clegg MEP, Leader of the Liberal Democrats and Deputy Prime Minister, has launched the Youth Contract, a £1billion programme to get every unemployed young person earning or learning again before long-term damage is done.

Across the UK, youth unemployment has risen to 21.9%. Nick Clegg said: "We cannot afford to lose the skills and talent of our young people - right when we need them most. We need the next generation to help us build a new economy. We owe it to them to make sure that even in tough economic times, we will do everything we can to find them a job, training or education. That is why today I have committed the Coalition to investing £1billion to tackle youth unemployment."

"Young people have been hit particularly hard in the recession, but even in the boom years, Labour failed to tackle the issue. During Labour's 13 years, youth unemployment rose by 40%. With Liberal Democrats in Government, we won't allow the children brought up in the boom to bear the brunt of the bust. The next generation must not pay the price for my generation's mistakes. So the Coalition Government won't sit on our hands and let a generation fall behind."

"The aim of the Youth Contract is to ensure that all jobless young people are earning or learning again before long term damage is done. Over three years, it will provide a work experience place for every unemployed 18 to 24 year old who wants one."

"Because we know businesses are struggling to take young people on, we will pay half their basic wage for six months. There will also be a new programme to help the most disengaged 16 and 17 year olds - getting them back to school or college, onto an apprenticeship or into a job with training."

"This is a £1bn package and what's different about it is gets young people into proper, lasting jobs in the private sector; but it's a contract, a two-way street. If you sign up for the job, they'll be no signing on for the dole; you have to stick with it. We want to give every young person a reason to get up, a reason to go out, and a reason to feel great at the end of the day; but young people have to meet us halfway. If you break your side of the bargain, don't just expect to live your life on benefits."

The Youth contract includes:

• 410,000 new work places over the next three years.
• 160,000 wage subsidies.
• 250,000 more work experience places over the next three years, taking the total to 100,000 a year.
• 20,000 more incentive payments to encourage employers to take on young apprentices, taking the total to 40,000 next year.
• Extra support through Jobcentre Plus, with weekly signing-on meetings, more time to talk to an adviser and a National Careers Service interview.