Young people on Universal Credit aged between 16-24 can be offered six-month work placements with wages paid by the government.
Businesses are now able to sign up to the new scheme, with companies like Tesco pledging to join.
The government will fully fund each “kickstart” job, paying 100 percent of the age-relevant National Minimum wage, National Insurance and pension contributions for 25 hours a week.
Employers will be able to top-up the wage, while the government will also pay employers £1,500 to set up support and training for people on a Kickstart placement, as well as covering uniforms and other set-up costs.
The scheme, being delivered by the Department for Work and Pensions, will be initially open until December 2021 with the option of being extended.
Chancellor Rishi Sunak said: “This isn’t just about kickstarting our country’s economy – it is an opportunity to kickstart the careers of thousands of young people who could otherwise be left behind as a result of the pandemic.”