GOVERNMENT OFFERS £4,500 BURSARY TO UNIVERSAL CREDIT FAMILIES WITH APPRENTICES

The Department for Work and Pensions and Department for Education have announced that households receiving Universal Credit will be able to claim a bursary worth up to £4,500 annually when a young person aged 16 to 18 leaves full-time education to start an apprenticeship. The payment is designed to replace benefit income lost when a family member enters paid training. The government said the bursary targets Universal Credit families for whom the current system discourages apprenticeships, and is expected to reach a few thousand households. Work and Pensions Secretary Pat McFadden stated: "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."

The bursary follows a report published by the Social Security Advisory Committee on 23 April, which identified what it termed "perverse effects" in how the benefits system affects post-16 education choices. The committee found that families lose between £17 and more than £330 per week in benefits when a young person starts an apprenticeship, depending on household circumstances. In one example cited, a single parent with a disabled child could lose up to £340 per week in benefits, whilst an apprenticeship salary typically stands at £258 per week. Because apprenticeships are classified as paid employment, parents can lose Child Benefit and elements of Universal Credit, whilst parents whose children remain in full-time education continue to receive support. The £30m funding pot will come from the growth and skills levy, which applies to employers with annual pay bills exceeding £3m.

The scheme forms part of a broader government package to increase apprenticeship uptake among young people. Official figures show more than one million people aged 16 to 24 are currently not in education, employment or training. The Shadow Work and Pensions Secretary Helen Whately said apprenticeships were beneficial but criticised the plan as "uncosted", stating it represents "spending money already committed elsewhere". The final amount of the bursary will be confirmed at a later date.