THE drive to expand apprenticeships is being "damaged" by fears of poor-quality training, MPs warn today - as the number of young people gaining places in the North-East slumps.

The flagship programme - hailed by the Government as a key success in giving workers the skills they need - is sharply criticised by the all-party business select committee.

Its report warns that: * The National Apprenticeship Service (NAS) focuses on the number of "apprenticeship starts", at the expense of quality.

* The increase in apprenticeships has mainly been among "over-25s", rather than teenagers - despite the huge leap in youth unemployment.

* The growth is in apprenticeships offered by the retail giants - rather than small and medium-sized companies (SMEs).

* Extra funding, and closer work with Chambers of Commerce, is needed to persuade SMEs to join the scheme.

* Only 18 per cent of firms said a £1,500 "apprenticeship grant" would tempt them to hire a new apprentice - with many arguing for £3,000-£5,000.

* Employers, apprentices and other parties are "confused about the overarching objective of the scheme".

Warning that the NAS was seen as "blind" to quality, as it strove to boost overall numbers, the report said: "There can be no doubt that the apprenticeship brand has been damaged as a result of this perception.

"NAS must not trade off between numbers, quality and brand."

The report came as new figures revealed the number of 16 to 18-year-olds starting apprenticeships in the North-East plunged by almost 17 per cent this year.

Only 9,200 under-19s joined the programme in the academic year 2011-12, official statistics showed - down from 11,070 the previous year.

Meanwhile, the number of mature apprenticeships has grown sharply, including among over 25s (up from 14,910 in 2010-11 to 18,420 in the period August 2011 to July 2012).

Labour has accused the government of replacing the 'Train to Gain' scheme of workplace training with adult apprenticeships - artificially inflating the total.

The number of under-19 apprenticeships fell in seven out of nine regions, although it grew in Yorkshire (up from 16,760 to 17,430).

Meanwhile, the government's own 'apprenticeship pay survey' found that, last year, one in five received no training - and one in 20 were unpaid.

But the department for business (BIS) insisted the figures for under-19 apprenticeships - which it published in a parliamentary answer - were "provisional".

Matthew Hancock, the skills minister, said BIS had asked entrepreneur Doug Richard, who achieved fame on the BBC hit show 'Dragons' Den', to ensure the apprenticeship programme delivered a "rigorous, high-quality service".

And he added: "The report rightly celebrates the sharp rise in the number of apprenticeships, and steps taken to improve their quality, but there is more to do."