Prime Minister Andy Burnham has announced £4,500 bursaries for parents receiving benefits, aiming to prevent an apprenticeship cliff-edge that could see families lose up to £339.92 per week in Universal Credit deductions. The move comes as part of broader Department for Work and Pensions (DWP) reforms designed to remove financial barriers hindering young people from pursuing apprenticeships.
The Social Security Advisory Committee, a quango advising ministers on welfare policy, had earlier warned of this looming cliff-edge. It calculated that a single parent with a child aged 16 or 17 who has a sickness or disability could lose £339.92 weekly if their teenager started an apprenticeship. With the expected apprentice salary of £258 per week, the household would face a net loss of around £80, effectively making apprenticeships financially untenable for many families.
Bursary Details and Funding
The new bursary, funded through the £1 billion additional investment in the Growth and Skills Levy announced in May, targets young people aged 16 to 24 who are eligible for free school meals or whose families receive certain benefits. It provides up to £4,500 to cover costs such as travel, equipment, and childcare, ensuring that no young person has to turn down an apprenticeship due to cost. Burnham confirmed that thousands more college places would also be created to expand access to skills and training close to home.
In addition, the government is introducing free apprenticeship training for all eligible under-25s starting in August, up to £8,000 in support for small and medium-sized enterprises (SMEs) hiring young apprentices, and National Insurance contributions (NICs) relief for apprentices under 25. These measures collectively aim to deliver 50,000 new youth apprenticeships.
Reactions from Disability and Mental Health Charities
Abdi Mohamed, Head of Policy, Research and Influencing at disability equality charity Scope, praised the initiative: "This bursary is a positive step which removes a real financial barrier for some disabled young people. A million disabled people in the UK want to work but face significant barriers getting into and staying in employment, so it's encouraging to see the Government taking practical action. Life costs a lot more if you are disabled. No young disabled person should have to turn down an apprenticeship because their family would be financially worse off. We welcome this announcement and hope it is the first of many steps the Government takes to work with disabled people to tackle the wider structural barriers they face getting into and staying in work."
Brian Dow, Chief Executive of Mental Health UK, also expressed support: "Recognising the barriers that can prevent young people starting apprenticeships and employment opportunities sends a really positive message. We see in our programmes that young people want to earn and learn, but it's crucial they have the right support to make this a reality. Being out of work or education can take a significant toll on young people's mental health and wellbeing. This is another step up in providing access to apprenticeships and other pathways into employment that will help young people build skills and experience, while providing a sense of purpose, confidence, and hope for the future."
Broader DWP Reforms and Impact
The bursary is part of a wider set of DWP reforms intended to overhaul the welfare system and boost employment. Universal Credit deductions have long been criticised for penalising families when young people enter work or training. The Social Security Advisory Committee's modelling highlighted that even a modest apprentice salary could push households into a net loss, discouraging uptake among those who need such opportunities most. By offsetting these losses, the bursary aims to make apprenticeships a viable option for disadvantaged young people.
The government estimates that the package will support over 50,000 new youth apprenticeships, with SMEs receiving up to £8,000 per apprentice to cover training and wage costs. The NICs relief further reduces employer costs, incentivising hiring. Additionally, free apprenticeship training for under-25s removes tuition fees, making it as accessible as further education courses.
Critics have noted that the bursary primarily addresses the financial cliff-edge for parents on benefits, but does not tackle other barriers such as lack of accessible transport or workplace adjustments for disabled apprentices. However, both Scope and Mental Health UK view it as a significant first step. The government has indicated that further measures will be announced in the upcoming Budget to address structural inequalities in the labour market.
