**Some Parents on Benefits to Receive Up to £4,500 for Child Starting Apprenticeship**
In a significant move to encourage young people to enter the workforce, the UK government has announced that parents on benefits will receive financial support of up to £4,500 per year when their children begin apprenticeships. This initiative aims to alleviate the financial barriers that families face when their children take on apprenticeship roles, which can often lead to a reduction in Universal Credit payments.
The new bursary scheme is designed to replace the lost benefits that families experience when their children start working in apprenticeships. Currently, some families risk losing between £17 and £330 weekly, depending on their individual circumstances, if their children enter paid employment. This financial disincentive has been highlighted as a barrier to youth employment, particularly for vulnerable groups such as single parents with disabled children, who could see their benefits reduced significantly, even exceeding the expected earnings from an apprenticeship.
The funding for this bursary program will be drawn from a £30 million allocation sourced from the growth and skills levy, a tax imposed on employers with annual wage bills exceeding £3 million. This initiative follows recommendations from the Social Security Advisory Committee, which pointed out the "perverse effects" of the current benefits system on young people's employment choices. The committee's findings indicated that the existing structure of benefits hampers government efforts to reduce the number of young people classified as not in education, employment, or training (NEET).
Currently, official statistics reveal that over one million individuals aged 16 to 24 fall into the NEET category. Former Health Secretary Alan Milburn has warned that without immediate action, one in six young people could be NEET in the next five years. The government’s bursary initiative is part of a broader strategy to encourage youth employment and is expected to benefit a few thousand households currently facing financial penalties for opting into apprenticeship programs.
Work and Pensions Secretary Pat McFadden emphasized the importance of this bursary in ensuring that financial constraints do not hinder young people's opportunities. "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," McFadden stated.
In addition to the bursary, the government is also rolling out further support for apprenticeships, which includes funding for apprenticeship training specifically aimed at individuals under the age of 25 and additional resources for employers who take on apprentices. This holistic approach is intended to create a more favorable environment for young people to transition into the workforce.
Prime Minister Andy Burnham has expressed his commitment to addressing the rising trend of NEETs, stating that his administration is "on a mission" to reverse this trend. As part of his early policy announcements, Burnham has articulated the need to balance academic and technical skills within the education system to better prepare young people for the job market.
The introduction of this bursary program represents a proactive step by the government to tackle the challenges faced by young people and their families in the context of apprenticeships. By alleviating the financial burdens associated with starting work, the government hopes to foster a culture of "earning and learning," ultimately contributing to a more skilled and employed youth population.