Tees Valley to pilot £9.4m apprenticeship brokerage scheme targeting 1,500 extra starts

Tees Valley Combined Authority has been selected among the first mayoral areas to pilot the government's Apprenticeship Brokerage scheme, with a £9.4m programme aiming to support 1,500 additional apprenticeship starts for 16 to 24-year-olds.

The combined authority said it would work with the Department for Work and Pensions (DWP), local employers and training providers to test the scheme.

The scheme is designed to help employers create apprenticeships and navigate the system, and to connect young people aged 16 to 24 with vacancies, particularly those not in education, employment or training.

Tees Valley Mayor Ben Houchen said: "Being chosen as one of the first places in the country to deliver this new scheme is a huge vote of confidence in Teesside, Darlington and Hartlepool."

How the brokerage will work

According to the combined authority, the programme will set up a system similar to university clearing. Young people who narrowly miss out on an apprenticeship will be redirected to other suitable vacancies with local employers.

The pilot is also aimed at small and medium-sized businesses, helping them to identify the people they need, navigate apprenticeship delivery and access wider support.

The announcement did not break down the 1,500 target by sector or name the employers and training providers involved.

Sarah Walker, Tees Valley Combined Authority Director of Business Solutions, said: "We will now work with employers, education providers and other partners to deliver a joined-up approach that delivers for everyone."

The combined authority said the pilot would test and develop the brokerage model and provide lessons for how it could operate more widely.

The national picture

The DWP announced in December 2025 a £140m pilot in which mayors would connect young people with apprenticeship opportunities at local employers. It formed part of a £725m package of apprenticeship reforms, which also covers the full cost of apprenticeships for eligible under-25s at small and medium-sized businesses.

In February 2026 the government said it would pilot a clearing-style system to redirect near-miss applicants to similar opportunities in their area. It said the measures, backed by the Growth and Skills Levy, would help deliver 50,000 more apprenticeships for young people.

A Department for Education (DfE) update on 1 July 2026 invited Mayoral Strategic Authorities (MSAs) to apply to deliver brokerage pilots in up to eight areas.

HM Treasury has since said funding has been expanded to all 14 existing MSAs with directly elected mayors, with £100m of additional funding over two years.

Government guidance for employers lists seven first delivery areas: London, Greater Manchester, Liverpool City Region, South Yorkshire, Tees Valley, West Midlands and West of England. Each MSA will design a service suited to its own area, the guidance says.

Existing support in Tees Valley

Mr Houchen said the scheme would build on work the combined authority was already doing on apprenticeships.

That includes its Levy Matching Service, which matches companies holding unspent apprenticeship levy funds with local businesses to cover training and assessment costs. The combined authority said the service had helped 26 businesses take on 89 apprentices as of late August 2026, with 11 businesses pledging about £1.8m.

Under the service, large levy-paying employers can transfer up to 50% of their unspent funds to smaller businesses. A transfer covers 100% of training costs, so the smaller business avoids paying the 25% contribution, according to the combined authority.

What happens next

The Tees Valley announcement did not give a start date for the pilot.

The DfE's July update described the pilots as running from autumn 2026 to March 2029. The government's employer guidance says the first services are expected to begin delivery in early 2027, with the remaining areas joining from spring 2027.