Private companies will be paid to wake up teenagers in a drive to get more young people back to college or into work.
Nick Clegg announced the initiative as part of his £126m Youth Contract to tackle the record number of 16 and 17-year-olds not in education, employment or training - so called Neets.
The Deputy Prime Minister has revealed that charities and businesses will be paid by results and that it is hoped up to 55,000 young people will return to college or find jobs.
Organisations can receive up to £2,200 for every child helped, but the full amount will only be paid if a young person is still in full-time education, training or work six months later.
Mr Clegg said: "Young people who have fallen through the net need tailored support to get back on track.
"We can't treat them like round pegs being forced into square holes - if you're young and have got to the point where you feel on the scrap heap, you need extra help to succeed in life.
"Disengaged young people often have complex problems that act as a barrier to getting them learning again, which the Government alone can't deal with. But very often local charities and businesses know what's going to help them."
One scheme in the North East, run by Pertemps People Development Group, will see wake-up calls offered "to help young people develop a routine".
Another, in Yorkshire, will see ex-soldiers deliver motivational sessions to disengaged youngsters through the Heroes to Inspire campaign.
Mr Clegg said organisations chosen to provide help should "be as creative and innovative as they can, to do whatever it takes, to get the young people who need it most back on their feet".
He added: "In exchange for this freedom, all we ask is that they get results.
"It's a win-win for the Government, young people and the organisations involved."
