Ahead of the government's meeting tomorrow on employing young people, the FSB has proposed higher wages and a scheme linking apprentices with companies.

It has also called for funds for training to be redirected to the smallest businesses, and a financial incentive for companies to take on apprentices.

John Wright, FSB national chairman, said that many small businesses would take on an apprentice but are put off by administration and the lack of financial support.

He said: "The government must make it easier for the smallest companies to create apprenticeships and should put in place a Group Apprenticeship Programme (GAP) to bring employers and apprentices together."

GAP would act as a safety net for apprentices by placing them in employment and reducing the administrative costs for smaller companies.

FSB has undertaken a survey with its members and found that 82% said they would be in favour of an increase in the minimum wage for apprentices.

Wright added that funds from the government's Train to Gain scheme in England must also be ring-fenced for the smallest businesses, to ensure they are able to get the funding they need to train and support an apprentice.

He said: "Small businesses are eager to do their bit and to take on employees, but the government must step up and help them to tackle the problem of unemployment."

According to FSB, the National Minimum Wage for apprentices is £95 per week whereas a 16-18 year old in an ordinary job is paid £123 per week.