Prime Minister Andy Burnham is weighing up a bursary of up to £4,500 per year per household to compensate parents for benefits lost when a teenager takes up an apprenticeship. Ministers believe the new payment will prevent young people from being discouraged by the potential loss of family income.
Proposal details
The bursary will be worth up to £4,500 per year per household, according to the Government. It follows warnings from the Social Security Advisory Committee about an “apprenticeship cliff-edge”, because the benefits system “unintentionally penalises families when their children pursue apprenticeships”.
The committee found that in one scenario, a single parent with a disabled child could lose up to £339.92 a week in benefits if their teenager started an apprenticeship. If the apprentice earned £258 per week, the household would suffer a net loss of around £80.
Ministerial statements
Speaking in Derby on Tuesday, Mr Burnham said: “I cannot accept the situation where we have so many young people in their 20s on benefits. It’s just not right for them. And why do we have that? The support just isn’t there.”
Work and Pensions Secretary Pat McFadden stated that the welfare system “should be a springboard to opportunity, not a barrier to it”. He added: “By providing bursaries to those who need them most and fully funding apprenticeship training, we are making sure cost is not the reason someone misses out.”
Mr McFadden also told the Guardian newspaper that “there is an expectation that people engage with the support” when it is introduced.
The bursary will be funded through the growth and skills levy, paid for by employers with annual pay bills over £3 million. Small and medium-sized enterprises will have access to financial support worth up to £8,000 for hiring young apprentices, ministers announced. “This is a serious investment in the next generation and in the future of our economy,” Mr McFadden said.
Education and charity response
Education Secretary Lucy Powell said: “Too many young people face unnecessary barriers to apprenticeships, college places and training. We’re investing to change that. This Government is determined to help thousands more young people gain the skills, experience and confidence they need to build successful careers. The jobs of the future are already being created and it’s our job to ensure that every young person, wherever they live and whatever their background, has the skills and support they need to succeed.”
Lucy Schonegevel, from the charity Action for Children, described the announcement as a “welcome step”. She said her charity’s youth employability teams “see young people turn down opportunities because they can’t risk a reduction in their family’s income”. She added: “We hope this change will mean fewer young people have to choose between their future and their family’s ability to put food on the table.” Ms Schonegevel expressed hope that the Government would “build on this balanced approach” when it responds to a review by Alan Milburn, the former health secretary examining why around one in eight young people aged 16–24 are not in education or work.
The announcement followed a pledge by Prime Minister Burnham “to get the number of young people who are not in education, employment and training down”. He unveiled plans to open up new technical education routes to 14-year-olds, placed on an equal footing with traditional academic pathways. From Year 10, pupils will be able to combine core academic subjects like English and maths with technical education linked to local jobs.
