Some parents on benefits to get up to £4,500 for child starting apprenticeship

Parents receiving welfare benefits will be given up to £4,500 a year to encourage their children to take up apprenticeships, according to government announcements. Under the new plans designed to guide young people into employment, families will be offered a financial bursary to offset Universal Credit payments that would otherwise be lost upon taking a job.

The payment is specifically designed to resolve situations where a small number of households face immediate income drops if their children begin apprenticeships. It is expected to help several thousand households currently experiencing weekly losses ranging between £17 and £330 depending on their personal circumstances. Funding for this £30m bursary comes directly from the growth and skills levy, a tax levied on employers whose annual wage bills exceed £3m.

Stock photo for illustration only, not from the actual event

Official reports highlighted that a single parent caring for a disabled child could lose up to £340 per week in benefits if that child starts an apprenticeship, an amount that surpasses the expected apprenticeship salary of £258 per week. Because apprenticeship schemes are legally classified as paid employment, household benefit payments are automatically reduced. Committees have argued that this framework severely undermines government initiatives to reduce the tally of young individuals not in education, employment, or training (Neet).

In a recent publication, former Health Secretary Alan Milburn cautioned that one out of every six young people could become Neet within the next five years unless immediate interventions are implemented. Government statistics indicate that over a million individuals aged 16 to 24 currently fall into this category. Officials noted that the newly introduced bursary will dismantle existing barriers, enabling youths to effectively earn and learn simultaneously.