Bonuses of £1,000 will be paid to businesses which take on young trainees as part of the Government's plans to lift the ailing economy.

Chancellor Rishi Sunak will outline his plan for the post-coronavirus recovery on Wednesday with protecting and creating jobs thought to be at the centre of his programme.

And the bonuses for taking on young trainees are at the heart of £111million in direct subsidies for companies to take on trainees for the first time.

Employers will be able to claim for up to 10 trainees - £10,000 - aged 16-24 with the money earmarked for directly or indirectly contributing to their training.

According to Sky News, Mr Sunak will say the scheme is designed to give the trainees "the tools they need to enter the world of work" with so many young people affected by closures and job losses during the coronavirus pandemic.

The trainee scheme is expected to be in place in England from September with £21million also being made available to the devolved administrations in Wales, Scotland and Northern Ireland.

Sam Holliday, Gloucestershire development manager for the Federation of Small Businesses said: "At a time when there is so much understandable concern about unemployment - particularly among young people - this new scheme to encourage traineeships and help give youngsters an important step on the career ladder has to be welcomed.

"The plan to give business owners a £1,000 incentive to take someone on in a traineeship role, which guarantees 240 hours of paid work experience, seems a sensible measure to give youngsters a chance to learn more about an industry they are interested in and also offer employers a chance to assess whether the trainee could indeed go on to have an apprenticeship or a full-time position in the future.

"Hopefully, this is the first of a number of creative ideas to stimulate employment and help business as part of the recovery process."

The union Unite has warned that urgent action is needed on training and apprenticeships to meet the skills required for the Prime Minister's plan to build the country back on its feet.

Assistant general secretary Gail Cartmail said: "The Prime Minister's pledge to 'build, build, build' the country's way out of this pandemic-caused crisis won't get very far without a workforce.

"We're calling on the Chancellor to make it clear when he announces his plans for recovering the economy that our young workers will be given a chance of a career in construction.

"For every one good quality apprenticeship, there are 1,000 applicants. Young workers have to scale this huge mountain so it is only right that they have the chance to complete their apprenticeship and have a job at the end of their training."