Clegg's Youth Contract 'penalising achievement," says Barnado's Some £126m of the total Youth Contract budget is reserved for employers to help 16 and 17-year-olds, who are at greater risk of the "scarring effect" of being jobless. But Barnado's, one of the subcontractors being paid to deliver the Youth Contract in the West Midlands, North West and Yorkshire, warns that young people with just one GCSE are equally at risk of becoming a "Neet." The charity is urging the DfE to change the rules. Janet Grauberg, Barnardo's UK director of strategy, said: "Youngsters with just one or two GCSEs are also at risk of becoming Neet and are being penalised for their achievements if they are not able to access further training. The Government must act now to give the most disadvantaged young people the chance to achieve their potential. Other concerns over the Youth Contract were raised earlier this year when City & Guilds, Britain's biggest vocational exam board, said school-leavers could "fall through the cracks" of the jobs market because the scheme is inefficient and bureaucratic. The Government insisted the Youth Contract would help get thousands of young jobless "earning or learning." Solve youth unemployment and win £10,000 Telegraph Media Group has teamed up with the Henry Jackson Initiative to launch a national prize on how to solve youth unemployment, giving £10,000 in cash to the person who comes up with the best ideas.The judges of the HJI-Reed prize will be looking for innovative measures to get young people working at a time of economic restraint. Þ Participants must submit an essay of no more than 1,000 words, in English, on measures for reducing youth unemployment to info@henryjacksoninitiative.org, or by mail to: HJI-Reed Prize on Youth Unemployment, The Henry Jackson Initiative, 8th Floor, Parker Tower, 43-49 Parker Street, London WC2B 5PS. Þ The closing date for entries is December 14, with the winner notified by January 25. Þ Participants must be aged 18 or over. Þ For full terms and conditions visit telegraph.co.uk/essay