Universal credit parents offered cash boost to help teens into apprenticeships

Households on Universal Credit are set to receive new financial support to encourage young people into apprenticeships.

Ministers believe the new grant will help dissuade young people from applying for apprenticeships for fear their families will be left without benefits.

The government says the bursary will support up to £4,500 per household per year.

The Social Security Advisory Committee has previously warned that the current benefit system is “on the brink of the apprenticeship cliff” because it “inadvertently penalizes families while their children undertake apprenticeships”.

The committee has previously highlighted that a single parent with a disabled child could lose up to £339.92 a week in benefits if their youngster starts an apprenticeship.

Even if weekly earnings were £258, the household would still face a net loss of around £80.

Work and Pensions Minister Pat McFadden said the benefits system “should be a stepping stone to opportunity, not a barrier”.

He added: “By providing scholarships to those who need them most and fully funding apprenticeships, we are making sure cost is not the reason someone misses out.”

Mr McFadden said elsewhere Guard “There is an expectation that people will engage in support” when the newspaper is introduced.

The bursary will be funded through the growth and skills levy paid by employers with annual wage bills of more than £3 million.

Small and medium-sized businesses will also be able to access financial support of up to £8,000 for the recruitment of young apprentices, ministers announced.

“This is a serious investment in the next generation and the future of our economy,” Mr McFadden said.

Education Secretary Lucy Powell said: “Too many young people face unnecessary barriers to apprenticeships, university places and training.

“We are investing to change this.

“This government is committed to helping thousands of young people gain the skills, experience and confidence they need to build more successful careers.

“The jobs of the future are already being created and our job is to ensure that no matter where they live and whatever their background, they have the skills and support they need to succeed.”

Lucy Schonegevel, of the charity Action for Children, described the announcement as a “welcome step”.

He said the charity’s youth employability teams “were seeing young people turning down opportunities because they couldn’t risk a reduction in their family’s income”.

He added: “We hope this change will mean fewer young people will have to choose between their future and their family’s ability to put food on the table.”

Ms Schonegevel said she hoped the government would “build on this balanced approach” when responding to former health secretary Alan Milburn’s review into why nearly one in eight young people aged 16 to 24 are neither in education nor work.

The announcement follows Prime Minister Andy Burnham’s pledge to “reduce the number of young people not in education, employment and training”.

In Derby on Tuesday, Mr Burnham said: “I cannot accept the situation where we have so many young people in their twenties on benefits.

“This is not right for them.

“So why do we have this? There’s no support.”

The Prime Minister has announced plans to open new technical education pathways for 14-year-olds that will put them on an equal footing with traditional academic pathways.

From grade 10 onwards, students will be able to combine core academic subjects such as English and mathematics with technical training linked to available jobs in their field.