Over the next three years, it says 50,000 young people will benefit from fully-funded training with small and medium-sized businesses, after the five per cent co-investment rate for under-25 apprentices was removed.
A £140 million pilot will give Mayors the powers to connect NEET (not in employment, education or training) young people with local opportunities, ensuring training aligns with regional employer needs.
Businesses can also gain flexibility in training with new short courses in AI, engineering, and digital skills launching in April 2026, which the Government says will support growth.
Corin Crane, chief executive of Coventry and Warwickshire Chamber of Commerce, said: “We welcome the real commitment to apprenticeships and we know that while some of this will be about saving money for businesses who want to take on an apprentice, it’s also another chance to get the message out there about how great apprenticeships are for individuals and employers.
“Through our own training companies and through many local FE colleges and independent providers, we see how apprenticeships offer a great route to employment for young people and a chance for firms to grow their own talent.
“While unemployment has remained fairly consistent over recent years, it has been at an alarmingly high rate for young people and it’s vitally important that the Government pulls as many levers as possible to address that.
“And, it’s crucial that businesses and individuals from both Coventry and Warwickshire can benefit from this latest announcement.”
Sally Lucas, executive director at Coventry and Warwickshire Chamber of Commerce Training, added: “It is a really positive step to remove all the training and assessment costs from employers who don’t pay the Apprenticeship Levy for apprentices who are under 25.
“We know there has been a huge amount of talk about the cost of employment rising but this will be a real benefit to SMEs who are thinking of taking on an apprentice.
“On top of that, and while this is not new, employers don’t pay any National Insurance for an apprentice aged under 25 unless they earn over £50,000 so that is another reason to look at this as an option for growing a workforce.
“The ten per cent Apprenticeship Levy top up which saw the £1m of the allocation become £1.1m of virtual credit for levy payers to spend is coming to an end while Levy funds in digital accounts will expire in 12 months rather than 24 months.
“I’d urge firms to get in touch with us and we can help them to navigate the world of apprenticeships and training if they need support.”
