Deputy Prime Minister Nick Clegg has sent thousands of letters to employers encouraging them to sign up to the governemtn's £1bn Youth Contact.

Launched in November, the scheme will provide 160,000 wage subsidies and 250,000 new work experience placements to help cut unemployment among 16 to 24-year-olds.

The wage subsidy will pay £2,275 to employers for every 18 – 24 year old unemployed person they employ from the Work Programme and is open to all businesses, voluntary organisations and charities.

The wage incentive will also be available for part time positions, with a rate of £1,137.50 if someone is employed between 16 and 29 hours.

Clegg wants employers to sign up now so they can offer jobs in April.

He said: "Getting young people earning or learning is my top priority, and that’s what the Youth Contract is going to do. This is a long-term boost to help businesses get young people into jobs before long-term damage is done. Employers have a huge part to play in this and the subsidy we’re announcing benefits business and young people.

"I have written to thousands of employers of all sizes – from global corporations to small local firms – calling on them to look at what we’re offering through the Youth Contract and sign up to offer jobs from April. This is a significant moment and a call to arms for businesses to offer long-term opportunities to young people who are out of work."

Minister for Employment, Chris Grayling, added: "We want to harness the experience from all sectors to make sure we get it right on youth unemployment. We want young people to enter the labour market with the skills, training and experience required to secure sustainable employment. But we can't do this alone, that is why today we are meeting with voluntary sector organisations and welcoming them on board with the Youth Contract."