“We must continue to work together for those living in our region and give people the opportunity to reach their true potential,” he added.
A spokesperson for Severn Trent said it had the “ultimate aim” to see more young people in work, and out of risk of poverty.
It said the announcement came at a time where the number of young people not in education, employment or training was nearing one million, the highest in a decade.
Figures released last year also showed a huge rise in the number of care leavers in England facing homelessness.
Darren Jones, chief secretary to the Treasury, said the firm’s commitment to helping people into work, including care leavers and ex-offenders, was an example of how business can “drive real change in our communities”.