An early version of Welfare to Work, the government's flagship employment policy aimed at getting unemployed young people into work, was test-driven by St James' and Seacroft University Hospital trust, Leeds, a year ago.

It was not, the trust admits, a resounding success. Around 30 young people aged between 18 and 24 entered the programme. Some made the grade, and still work for the trust. Others didn't, a few failing even to turn up for interview.

Some preferred to stay on the dole, finding that a job did not offer a vast financial improvement over state benefits.

But when the opportunity came to sign up to the New Deal this year, the trust had no second thoughts about getting aboard: this time there were government backing, resources, help mechanisms.

'There's a much harder edge,' says personnel director Stephen Griffin.

Jointly with Leeds city council, the trust is preparing to press ahead with its initiative as early as possible after the launch of the New Deal next month.

It will provide 'gateway' advice to young people to prepare them for work and offer 12 posts in clerical, support service and secretarial areas.

'If they make the grade in their job, then that will be their job. These are real vacancies. It's our hope they will stay in these jobs and use them as platforms to develop further,' says Mr Griffin.

The recruits will be just a fraction of the 250,000 young unemployed people targeted by the New Deal. The idea is to move them off benefits and into work. It will target those 'who find it most difficult to reconnect with the world of work'.

Financed by a windfall levy on the privatised utilities, the New Deal focuses on disadvantaged young people: those with disabilities, lone parents, ethnic minorities, those hit by large-scale redundancies; and those who have recently left council care.

The jobs will come with a short-term subsidy, so long as the job offers a minimum of 30 hours a week. Employers will be expected to offer 'the normal rate for the job'.

Employers must not sack existing workers to take on the New Deal recruits.

'The New Deal is serious about breaking the log-jam of unemployment, poverty and social exclusion. It will include specific measures focused on helping those at most disadvantage equip themselves with the skills and experience they need to get a job and hold on to it,' says employment minister Andrew Smith.

The reality of the New Deal for trusts as employers is tough. Mr Griffin points out that many potential recruits will initially not be easily employable: they may have criminal convictions, have committed drugs offences, have a history of mental illness. Their confidence and self-esteem may not be high.

But with the right support, resources and preparatory training, he believes the New Deal can work.

For the trust, the scheme could be an important source of recruitment, particularly in non-professional jobs where turnover is high; the financial subsidy will ease the cost of training new recruits.

There are also wider benefits. 'If you take a broader look at health, getting people off the unemployment register and getting them into work, giving them confidence and pride in themselves, that's clearly a long- term advantage,' says Mr Griffin.

Nigel Turner, human resources director at Royal Free Hampstead trust in north London, says the New Deal is unlikely to be a significant source of professional staff. But he adds it is not just about altruism on the part of the NHS. 'The NHS has a role to play, and I'm sure it will bring us benefits.'

Even so, the New Deal may in time bring in professionals. The scheme now includes 25 to 35-year-olds who are long-term unemployed, raising hopes that single-parent nurses may be persuaded to return to the NHS.

The NHS will be expected to play its part in the chancellor's drive to get people off welfare and into work. Patrick Butler reports