Prime Minister Andy Burnham has announced a new bursary worth up to £4,500 per year for Universal Credit households to help teenagers take on apprenticeships. Ministers believe the scheme will reduce the number of young people discouraged from applying due to fears their family might lose benefits.
Bursary details and background
The Social Security Advisory Committee had previously warned of an “apprenticeship cliff-edge”, because the benefits system “unintentionally penalises families when their children pursue apprenticeships”. The new bursary aims to address this. Lucy Schonegevel from Action for Children described the move as a “welcome step”, adding that the charity’s youth employability teams “see young people turn down opportunities because they can’t risk a reduction in their family’s income”.
In one scenario highlighted by the committee, a single parent with a disabled child could have lost up to £339.92 a week in benefits if their teenager started an apprenticeship. If the apprentice was paid £258 per week, the household would have made a net loss of around £80.
Funding and technical education overhaul
The bursary will be funded through the growth and skills levy, paid for by employers whose annual pay bill is more than £3 million. The announcement comes as part of a broader push to tackle youth unemployment. On Monday, Mr Burnham announced plans to make new technical education routes available to 14-year-olds. From Year 10, pupils will be able to combine core academic subjects, like English and maths, with technical education linked to jobs available in their area.
Mr Burnham said he wants there to be “no dead ends” for youngsters coming out of education, saying Britain “will value the hard hat every bit as much as the graduation cap”.
