A subsidy will be available to companies taking on two of the estimated 16,000 workers who will become ineligible for benefits under new Danish government regulations kicking in at the start of 2013.

According to English language The Copenhagen Post, changes to the dagpenge (unemployment benefits) system were passed by the previous government, halving the period of time that someone can claim benefits to two years, and doubling to 12 months the length of time they must have been in full-time work previously to be entitled to the benefit.

Private sector workplaces which take on two workers who were about to lose their benefits will be paid DKK25,000 (£2,700) after a year.

Prime Minister Helle Thorning-Schmidt has also announced a deal to encourage various public and private sector groups to create around 12,500 jobs for this group, the Post adds, with the premier saying these employers “are taking on a very large social responsibility”.