New financial support announced for Universal Credit households
Households on Universal Credit are set to receive new financial support to encourage teenagers into apprenticeships, reports BritPanorama.
The government believes the new bursary initiative will help alleviate concerns that young people may avoid apprenticeships for fear of their families losing benefits.
This bursary will offer up to £4,500 annually per household, aiming to address what the Social Security Advisory Committee describes as an “apprenticeship cliff-edge,” where the current benefits system inadvertently penalizes families when their children pursue apprenticeship opportunities.
A single parent with a disabled child, for example, could stand to lose up to £339.92 per week in benefits if their teenager started an apprenticeship, the committee highlighted. Even with potential weekly earnings of £258 from the apprenticeship, the household could experience a net loss of approximately £80.
Work and Pensions Secretary Pat McFadden stated that the welfare system “should be a springboard to opportunity, not a barrier to it.” He emphasized that by providing bursaries to those in need and ensuring full funding for apprenticeship training, the government aims to remove financial obstacles that could prevent young people from pursuing these paths.
McFadden further noted that there is an expectation for engagement with this support when implemented. The bursary will be financed through the growth and skills levy, contributed to by employers with an annual pay bill exceeding £3 million.
In addition to the bursary, small and medium-sized enterprises will be able to access financial support of up to £8,000 for hiring young apprentices. “This is a serious investment in the next generation and in the future of our economy,” McFadden remarked.
Education Secretary Lucy Powell echoed these sentiments, noting that “too many young people face unnecessary barriers to apprenticeships, college places, and training.” She affirmed the government’s commitment to ensuring that every young person, regardless of their background, has the skills and support necessary for success.
Lucy Schonegevel, representing the charity Action for Children, welcomed the announcement as a positive development. She highlighted that her organization’s youth employability teams often observe young people declining opportunities due to fears over their families’ income stability. Schonegevel expressed hope that this change would allow more young individuals to seize opportunities without jeopardizing their families’ financial security.
She further mentioned the importance of the government building on this initiative in response to a review by former Health Secretary Alan Milburn, who is investigating the challenges faced by the one in eight young people aged 16 to 24 who are neither in education nor employment.
The announcement coincided with a pledge by Prime Minister Andy Burnham to decrease the number of young people who are not engaged in education, employment, and training. While in Derby, Burnham voiced his concern over the significant number of young individuals on benefits, stating, “It’s just not right for them,” and emphasized the need for better support systems.
In a bid to enhance technical education access, Burnham unveiled plans to introduce new educational routes for 14-year-olds, allowing them to blend core academic subjects with technical education that aligns with local job opportunities.
