Launched by Business Secretary, Lord Mandelson, the Building Young Britain initiative will see £40 million of government funding for a network of job opportunities for young people.
Internships will be made available to school leaves and graduate via the Graduate Talent Pool website. It has been launched with around 2,000 internships but this number is expected to rise.
On welcoming the announcment, NUS President Wes Streeting said to the BBC, that the plan would help develop the skills of many recent graduates who are currently facing the worst job market for many years.
"Offering access to internships and work opportunities is infinitely preferable to the permanent economic and social scars of long-term unemployment.
"NUS is in active discussions with a wide range of employers to encourage them to further expand the range of opportunities available to students and graduates."