Businesses and charities across the region were yesterday handed more than £11million to recruit teenagers and tackle the “ticking timebomb” of unemployment.

They will be able to claim wage subsidies of up to £2,200 for every jobless 16 or 17-year-old they put in work or training, to “get their lives on track”.

Deputy Prime Minister Nick Clegg announced the scheme – part of a £1 billion Government jobs fund aimed at tackling NEETs, youngsters not in education, employment or training.

He warned of a “ticking time bomb for the economy and our society as a whole” and added: “We urgently need to step up efforts to ensure some of our most troubled teenagers have the skills, confidence and opportunities to succeed.

“That’s why I am calling on charities and other organisations at the coal face to work with Government to help tens and thousands of lost teenagers onto a brighter path.”

Mr Clegg announced £126million to help 55,000 teenagers, including £11,120,602 for the South West. But under a payment-by-results system, the firms and charities will only get the full subsidy if they can prove the young people are sticking with training programmes, or holding down jobs.

They must agree an action plan at the outset, display progress after about three months and show the youngsters are still fully engaged after six months.

The initiative follows a sharp rise in the number of NEETs, and the coalition was criticised for axing Labour’s Future Jobs Fund, which guaranteed a job for 18 to 24-year-olds out of work for ten months.

So in November, Mr Clegg unveiled his £1 billion jobs fund, which – as well as wage subsidies – includes work experience and apprenticeships.

However the cash on offer is enough to help only 7.7 per cent of NEETs, and it will focus on those aged 16 or 17 with no GCSEs at A*-C grade.

Labour spokesman Liam Byrne said: “This is much too small and much too late to tackle a problem that is likely to cost our country £28 billion over the next ten years.

“The Government needs to bite the bullet and put in place a sensible tax on bankers’ bonuses in the next Budget to help get 100,000 young people back to work.”

CBI director for employment and skills, Neil Carberry, said: “This announcement is a step forward but we remain concerned that this programme does not go far enough.

“We still need to see urgent action in schools. “