Prime Minister Ardern announced a new scheme to get young people on the benefit back into work.

A new plan to get thousands of young people into work and training has been unveiled by Prime Minister Jacinda Ardern on Thursday.

The Mana in Mahi - Strength in Work scheme is designed to help people aged between 18 and 24 who have been on the benefit for six months or more.

Employers will be encouraged to take them on and help them work towards a level four qualification.

The scheme will pay an income equivalent to the benefit the person was on, with the employer topping up to at least the minimum wage.

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There will also be extra funding to provide pastoral care.

The scheme was previously known as Labour's Dole for Apprenticeships policy, Ardern said. It's a policy that was created in 2016.

ROSA WOODS/STUFF Minister of Employment Willie Jackson says it is "not good enough" that 15 per cent of Māori and Pasfika youth were not earning or learning. Pictured: Willie Jackson.

Mana in Mahi will start as a pilot for up to 150 participants and will increase to as many as 4000 from next year. Forty will be on the job from October.

"Our young people have so much promise - we're going to help them bring that promise to life by giving them the power to get into a job and gain qualifications with our support," Ardern said.

"Mana in Mahi is about supporting our young people. We'll help them earn an apprenticeship or other qualification so they can get on the pathway to life-long work. It's a win-win - they get off the benefit and enjoy the dignity of work while encouraging employers to take on apprentices they might not otherwise have trained."

Ardern said the policy budgeted a cost between $3000 and $6000 per placement. However when redacted details were accidentally made public in June initial estimates had the scheme costing between $12,750 and $15,750 per person, per year, or an annual cost of $51m-$63m, which it said would cover a wage subsidy and provision of wrap-around supports.

Minister of Social Development Carmel Sepuloni and Minister of Employment Willie Jackson also spoke.

Jackson said it was "not good enough" that while overall unemployment was low, 15 per cent of Māori and Pacific 15 to 24-year-olds were not in education, employment or training (NEET).

ROSA WOODS/ STUFF The PM unveiled a new plan to get thousands of young people into work and training.

The announcement took place at Downer Yard in Porirua, the civil works and engineering company's Wellington "super-site".

Porirua city is no stranger to the growing phenomenon of unengaged youth. Porirua City Council's latest status report, published in February, found 19 per cent of those between the ages of 15 and 24 were not in education, employment or training.

It's a higher than the national rate of NEETs, which was 12.4 per cent in March. Prime Minster Ardern estimated it was "roughly 70,000" young people.

The Porirua City Council report also found a higher per cent of 18 to 24-year-olds were receiving a benefit than the figures found among youth nationally, 14 per cent compared to 9 per cent respectively.

Nearly one in five of those collecting a main benefit in the city were between 18 and 24.

ROSA WOODS/STUFF Downer lower north general manager Lyall Hedges says the scheme will be "transformative" for businesses facing a skills shortage.

A programme that Downer has through a partnership with Work and Income has led to the company hiring of over 1000 unemployed workers.

Downer general manager for the Lower North transport services Lyall Hedges said the scheme would be "transformative" to businesses facing a skills shortage.

"It's just going to encourage more employers to bring in more people off the streets."

"If you train your apprentices right they're an asset and yes they might be a bit of trouble at first but as long as they stay in the industry it's worth it," Hedges said.

ROSA WOODS/STUFF From left: Employment Minister Willie Jackson, Social Development Minister Carmel Sepuloni, foreman Dante Coleman-Sutch and Jacinda Ardern.

Downer foreman Dante Coleman-Sutch has been with the company for six years, starting work through an apprenticeship.

He said being a young person in the sector coming in with no training "could be quite daunting at times".

"Sometimes [the attitude towards apprentices] can be a bit negative, like they're going to slow the whole job down and decrease productivity."

Coleman-Sutch said the Mana in Mahi programme will now make young people more attractive candidates for jobs where people with experience used to be preferred.

"The decrease in productivity is sort of going to be offset with the scheme."

National's tertiary education, skills and employment spokeswoman Paula Bennett said she supported efforts to get young people into work but there were still questions around the scheme that Government needed to answer.

"Will there repercussions for those that either don't take up the opportunity or fall out pretty quickly because they're unable to pass a drug test or they're not turning up regularly?"

Bennett said the 4000 person target, which Ardern admitted was "aspirational", was "too aspirational"

"I think they're being quite unrealistic in their expectations and the work that it will take to support them."