Young people who are unemployed for six months will be guaranteed work or training, Chancellor Alistair Darling, has announced.
The scheme, which will begin next month, was unveiled as part of his pre-Budget speech in the commons.
Currently only those under 24 years old who have been unemployed for a year qualify for the help.
The chancellor hopes to raise 550m - from a 50% tax on bankers bonuses above 25,000 - to help ease unemployment.
Work and Pensions Secretary Yvette Cooper said youth unemployment remained a major government concern.
"The longer young people are unemployed the harder it can be for them and that's why we are investing this extra help. The 5bn investment we have already set out is making a real difference."
Youth unemployment, measuring the number of 16 to 24-year-olds out of work, now stands at 943,000.
