Doncaster Chamber Welcomes Government Incentives to Help SMEs Hire and Train Young People
Doncaster Chamber of Commerce today welcomed the Government’s announcement of new financial incentives aimed at supporting SMEs to hire and train young people, describing them as a vital boost for skills, business confidence, and local economic growth across Doncaster and South Yorkshire.
The measures focus on helping employers reduce barriers to recruiting young talent and include:
Support for Employers
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£3,000 Youth Jobs Grant for SMEs hiring 18–24-year-olds who have been on Universal Credit for six months — expected to support 60,000 young people nationally.
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£2,000 apprenticeship incentive for SMEs hiring 16–24-year-old apprentices, aimed at creating 50,000 additional apprenticeships.
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Stackable incentives — SMEs hiring a young person on Universal Credit and placing them on an apprenticeship could receive up to £5,000 in combined support.
Dan Fell, Chief Executive of Doncaster Chamber, said:
“This is very welcome news for SMEs in Doncaster. Businesses across the region consistently report skills shortages and recruitment challenges, particularly in sectors like logistics, engineering, hospitality, and retail. These incentives reduce the financial barriers to hiring and give local firms the confidence to invest in young talent.”
Sian Booth, Head of Policy and Partnerships at Doncaster Chamber, added:
“We have been consistently calling for targeted financial incentives to help SMEs take on young people, so it is encouraging to see this reflected in the Government’s approach. The ability to combine support for jobs and apprenticeships is particularly valuable, giving businesses practical tools to bring young people into meaningful, career-focused roles.”
Doncaster Chamber is particularly pleased to see that these new apprenticeship units reflect the skills that local employers are highlighting through the LSIP, with strong demand for roles such as electrical engineering, solar installation, and welding. These areas align closely with the focus sectors identified in South Yorkshire’s plan — clean energy, advanced manufacturing, and defence — ensuring that young people are trained in the skills that local businesses truly need.
Apprenticeship units are short, flexible training courses designed to respond quickly to evolving skills needs. The new units include: Welding – mechanised, AI Leadership – developing AI strategy, Electric Vehicle Charging Point Installation and Maintenance, Electrical Fitting and Assembly, Mechanical Fitting and Assembly, Permanent Modular Building Assembly, and Solar PV Installation and Maintenance.
As the lead Employer Representative Body for the South Yorkshire Local Skills Improvement Plan (LSIP), Doncaster Chamber emphasised that these measures directly support regional priorities: improving pathways for young people, aligning training with employer needs, and ensuring local businesses can access the talent required to drive growth.
While welcoming the SME-focused incentives, the Chamber expressed concern about the Government’s planned withdrawal of funding for leadership and management apprenticeships — including the Level 6 Chartered Manager Degree Apprenticeship from September 2026, as well as Levels 3 and 5 programmes.
Sian Booth added:
“Leadership and management apprenticeships are crucial for creating workplaces where young people can thrive. Without these programmes, SMEs risk gaps in management capacity, which can affect retention, wellbeing, and progression. Good management is not a luxury — it is fundamental to ensuring young people have the support they need to succeed in their roles.”
Dan Fell added:
“CEOs and directors simply cannot step away from day-to-day operations to develop effectively. We urge the Government to reconsider these cuts to ensure businesses have the leadership capacity needed to support growth and opportunity.”
He concluded:
“We look forward to working with government, employers, and partners to ensure these SME incentives and apprenticeship units are implemented quickly and effectively, giving young people access to high-quality jobs and training locally.”
The Chamber will also host events and webinars to help local employers make full use of the funding available.
Posted on 18 March 2026
