The Youth Training Scheme (YTS) is much the most significant public policy intervention in the UK training market since the 1964 Industrial Training Act (ITA). This paper presents an economic evaluation of YTS. We begin in Part II by outlining the history and mechanics of the Scheme. Part III describes the market failure (or failures) which YTS addresses, and Part IV assesses how successful it has been in tackling these problems. Finally, Part V considers the Scheme's future. What further changes are needed to improve its effectiveness?