Government Youth Contract to help the UK's unemployed

Deputy Prime Minister Nick Clegg visits Leeds College of Building

The government has launched a new £1bn scheme to try to get more under-25s into work.

It's hoped the cash will create around 400,000 work and training placements in Britain to help tackle record youth unemployment.

The Youth Contract will see firms given a subsidy of £2,275 for each unemployed 18 to 24-year-old they take on for six months.

Companies will also get £1,500 for every apprentice they take on.

The scheme's designed to be a contract, while anyone dropping out without good reason will lose their benefits.

Ministers say the cost of all of this will come from new money, while Labour argue it could come from cutting tax credits.

Newsbeat's been to Bournemouth to find out what people think.

ANDREW BOOTH, 20 (out of work for six months)

"I've been going to the job centre every couple of weeks for months now, but I'm really struggling to find anything.

"I've sent so many CVs out but no-one wants me and I just think that's because companies are scared to hire at the moment.

"The idea of getting six months employment with a firm sounds like a really good idea and I think it would encourage firms to take people like me on.

"It also gets people out working and off benefits."

ELLIE TAYLOR, 19 (out of work for two months)

"I've been looking to work with children or maybe even get some bar work.

"The last two months have been a nightmare, I've gone into places to see if they're looking for people, gone through the papers, job sites, but there's nothing out there.

"This should have come sooner because all of it sounds like a good idea to me.

"I think this will definitely help me find work, but I'm not sure about giving up benefits if you decide to quit the job, you'd be a bit screwed then wouldn't you?"

SAM GOODWIN, 18 (was unemployed, now a student)

"I was signed up to the job centre for months but the work they offered me was just a week here, or a week there, it was never good enough pay to even consider.

"During that time I had a car to run and it was a really difficult period for me.

"I know this plan is only for six months but it would help give young people experience and that would make things easier to get a job in the future.

"I understand the contract thing, but if someone starts a job and they realise they don't like it, they'll lose their benefits and that could cause a backlash."

DAVID RAGG, 44 (owns a florists in Bournemouth)

"I think it actually gives younger people a chance to get involved in a career that maybe they wouldn't have had in the past.

"I'm not currently looking to employ other people at the moment, but if it gives someone a chance and they fit the criteria, then it's all good.

"If we had someone here for six months, embraced what we're about and dealing with customers, then they might have a future in retail and not just here."