The new programme is set to begin from August this year to address the growing frustration of employers who have been complaining about the quality of young applicants applying for posts.
The programme was designed to build on the core skills young people require to find and keep a job. These include help in timekeeping and teamwork, as well as assistance in English and mathematics.
Skills minister Matthew Hancock said: “Employers will have a key role in making the traineeship programme a success, both leading delivery and working in partnership with education and training providers.”
He explained that traineeships would be restricted to providers that Ofsted have judged to be outstanding or good.
Providers are not required to pay young people for the traineeships, as applicants will be undertaking education and training enabling them to qualify for financial support.
Figures released by the department for education in November showed more than a million young people in England were not in education, employment or training in the three months to September 2012.
Colin Rothery, regional manager for Throgmorton Financial Services, said: “Traineeships are useful for financial advisers. I doubt very much if its something a smaller firm can take on board but the larger nationals would be able to do that, as they would have dedicated training resources to support them through their exams and out in the field. The financial adviser industry is difficult to get into. I would categorically say that something like a traineeship scheme that leads into an apprenticeship that would attract the right sort of calibre would be useful. In effect, the young person could be seamlessly introduced and handed over to a retiring adviser’s clients.”