By Anushka Asthana, Political Correspondent
Benefit cuts hitting 100,000 families will be used to fund a £1bn commitment to deliver three million apprenticeships over the next Parliament, David Cameron has revealed.
The plans show that 70,000 households will be affected by further reducing the benefit cap to £23,000.
That saves £135m per year, while taking housing benefit off 18 to 21-year-olds will cut £120m a year and hit 30,000 young people.
The Prime Minister is calling on all FTSE 100 companies with a significant workforce in Britain to provide apprenticeships by 2020.
He has received the backing of a number of major companies including Fujitsu, National Grid, Nestle, Airbus, Balfour Beatty and Ford.
Mr Cameron said: "Because of difficult decisions we will make on welfare, we will deliver three million apprenticeships by 2020. This is a crucial part of our long-term economic plan to secure a better future for Britain.
"It will help give us the skills to compete with the rest of the world. And it will mean more hope, more opportunity, and more security for our young people, helping them get on in life and make something of themselves.
"We have already doubled apprenticeships this Parliament. We will finish the job in the next and end youth unemployment."
The way Mr Cameron is planning to pay for the jobs boost is likely to draw criticism from the Labour party and the Lib Dems.
Nick Clegg has accused the Conservatives of funding tax cuts for the wealthy on the back of the least well off.
In his conference speech, Mr Clegg said: "The young and the working poor are hit time and time again as George Osborne takes his axe to the welfare budget with no regard for the impact on people's lives."
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