Benefit payments of £1,324 were paid over 26 weeks through the Self-Employment Credit scheme.
It is now called the New Deal and the cash slashed to £800 over 16 weeks.
One in five young people - 952,000 aged 16 to 24 - are on the dole. Jobless under 25s can apply for New Deal cash.
Shadow Work and Pensions Secretary Theresa May said: "Gordon Brown claims to offer extra help but actually offers less."
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