The government has announced plans to extend the time young people under the age of 21 can do work experience without losing their benefits.

Currently, people hoping to bolster their CV with additional work experience are at risk of losing their benefits if they work for more than two weeks. However, the proposed change would extend this to eight weeks for those aged 18-21.

Moreover, under a new scheme to be run by the Jobcentre Plus, unemployed people aged between 18 and 21 will be matched with employers looking for people to do work experience.

Specialist staff in Jobcentre Plus will work with businesses across the country to find quality work experience opportunities to benefit the individual and the employer.

Employment minister Chris Grayling unveiled the scheme while visiting a work experience programme run by the construction company Skanska in east London.

He said: “Our new work experience scheme will give young people the chance to get valuable experience in a business for up to two months, which will make a real difference to their confidence, their employability and their prospects.”

The initiative has already gained the backing of large employers including Homebase, Hilton Hotels, McDonald's, construction company Carillion and Punch Taverns.

It will form part of the government’s Get Britain Working package, which also includes the government’s Work Programme to support jobless people back into work and the roll out of work clubs across the country.

Recent figures published by the Department for Work and Pensions show there are a quarter of a million children growing up in homes where no one has ever worked, while further figures show that there are 600,000 young people who have never worked since leaving school or college.

Miriam Lewis, Skanska’s head of community development for the company, added: "Skanska is pleased to embrace the concept of work experience at all work access levels.

"It widens the undergraduate experience, encourages the operative’s participation and increases the employability of those previously unemployed. When used with a view to future employment it gives the employer and informed choice over candidate selection."

Jackie Orme, chief executive at the CIPD, said: “Our research shows employers are reluctant to hire from groups where they feel basic job skills, experience and reliability are lacking.

“Work experience is a perfect way to break the vicious circle of no experience/no job, and give young people an opportunity to develop and demonstrate the skills and commitment employers need."

She urged CIPD members “to go out of their way” to use the new work experience matching service.

David Frost, British Chambers of Commerce director general, said: “Employers will be key to getting young people into work. This programme is a way of not only providing quality work experience but also of introducing individuals to the modern world of work.”

However, unions contrasted the promotion of work experience with the scrapping of the Future Jobs Fund, which offered paid work.

“Replacing a jobs scheme that offered six months’ paid work with one that offers eight weeks’ unpaid work experience is a woefully inadequate response to the jobs crisis facing young people today,” said TUC general secretary Brendan Barber.

“While short periods of work experience can be positive for some young people, extended periods of unpaid work provide little benefit for unemployed people and can displace jobs for existing workers.”