Families on universal credit won’t lose out if their teenager starts an apprenticeship

Households on universal credit will be offered financial support to encourage young people into apprenticeships.

Nearly a million 16 to 24-year-olds aren’t currently in education, employment or training.

That’s one in eight young people. 

But a recent landmark review by former health secretary Alan Milburn found that more than eight in ten (84%) young people in this position do want to find a job, education or training.

So the government wants to remove obstacles that might put young people off starting an apprenticeship.

Families won’t miss out on benefits

Part of the problem is that families on universal credit lose a big chunk of their benefits payment when a young person starts an apprenticeship.

In fact, a Social Security Advisory Committee report found that single parents with a disabled child can lose up to £340 a week in benefits.

Since if the apprentice earns the expected salary of £258 a week, these households will be about £80 worse off.

The fear that their families might have their benefit payments reduced can often put young people off applying for apprenticeships.

So ministers are taking away this barrier by offering parents bursaries worth up to £4,500 a year per household.

It’s hoped this will encourage more young people into apprenticeships and help them develop practical skills and real-world experience.

“Every young person deserves the chance to build a future they can be proud of,” said work and pensions secretary Pat McFadden.

“Our welfare system should be a springboard to opportunity, not a barrier to it.

“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.” 

Year 10 pupils to get more access to technical learning and work experience

At the same time, the government has announced that it’s giving 14-year-olds the chance to combine the core academic subjects, such as maths, science and English, with high-quality technical education.

This will be linked to the jobs available in their area and Year 10 students will have the chance to spend time with employers and get real-world experience.

“For too long in this country, students have been told that you must take the academic path to do well and to be respected,” said prime minister Andy Burnham.

“I want an education system based on parity between academic and technical which gives all young people a clear path in life. 

“From today, Britain will value the hard hat every bit as much as the graduation cap.”

Don’t forget to extend your child benefit claim

If your teenager decides to stay in full-time education or approved training after their GCSEs, make sure you extend your child benefit claim.

Child benefit automatically stops on 31 August on or after a child’s 16th birthday unless it’s extended.

So if you don’t want to miss out, you can extend your claim:

•    via the HMRC app
•    online on GOV.UK
•    or by scanning the QR code on your letter, which takes you to GOV.UK

Child benefit is currently worth:

•    £27.05 a week for the eldest or only child
•    £17.90 a week for each additional child