Prime Minister Andy Burnham has confirmed a major Universal Credit change set to take effect from August 2026, introducing a £4,500 bursary for parents whose children embark on an apprenticeship. The measure is part of a broader strategy to address the so-called NEETs crisis—young people not in education, employment, or training—and to reduce welfare dependency among under-25s.
New Bursary and Free Training for Under-25s
The bursary will be available to mothers and fathers receiving benefits from the Department for Work and Pensions (DWP), including Universal Credit. In addition, from 1 August, all eligible under-25s will have access to free apprenticeship training. The government will fully fund this training, aiming to encourage thousands more young people to pursue apprenticeships with confidence.
Burnham, who leads the new Labour government, confirmed that the reforms are underpinned by the previously announced £1 billion additional investment in the Growth and Skills Levy, first unveiled in May 2026. The final amount of the bursary will be confirmed in due course, but the £4,500 figure has been set as a baseline.
Wider Package to Boost Youth Apprenticeships
The bursary and free training form part of a comprehensive apprenticeship support package. Alongside new incentives for employers taking on apprentices, the government expects these measures to generate 50,000 new youth apprenticeships by the end of this Parliament. The changes come as the escalating cost of Universal Credit continues to strain public finances, and officials hope that moving young people into skilled employment will reduce long-term welfare spending.
The Prime Minister's office emphasised that free apprenticeship training for under-25s will eliminate a key financial barrier, allowing more young people to gain qualifications without incurring debt. Employers will also receive enhanced support to create apprenticeship places, with details to be published in the coming weeks.
Reactions from Advocacy Groups
Dominic King-Carter, Director of Policy and Public Affairs at Carers Trust, welcomed the announcement but called for further action. “We know financial barriers are particularly real for young carers juggling care, work and education, especially those who are disabled themselves,” he said. “This is a positive step towards reducing barriers into important opportunities like apprenticeships for this group. There are more wins available to Government that would give all young carers the best chance of a fair future. This is another encouraging sign that this Government is willing to act to reduce barriers that young people face. We look forward to continuing to work with the Government to ensure young carers are better supported to access the education or training opportunities they want.”
Lizzie Crowley, Senior Policy Advisor – Skills at the CIPD, also praised the bursary. “The new bursary is a welcome and practical step that should remove a significant financial barrier for disabled young people and their families,” she stated. “No young person should have to turn down an apprenticeship because taking one up would leave their household worse off. Making apprenticeships genuinely accessible isn’t just fair to the individual, it’s how we close skills gaps and build the capability the economy needs. Alongside wider support for youth apprenticeships, this should help more young people access the skills, experience and opportunities they need to build a successful career and help employers build the more inclusive, skilled workforce that drives better performance.”
Implementation Timeline and Future Steps
The free training begins on 1 August, with the bursary available from the same date for qualifying households. Eligibility criteria will be published by the DWP shortly. The government has indicated that the measures are designed to complement existing apprenticeship schemes and will be reviewed annually. The Labour administration has made tackling youth unemployment a central pillar of its economic policy, with the Prime Minister pledging to halve the number of NEETs by 2030.
Critics have questioned whether the bursary amount is sufficient to cover the real costs faced by families, but Burnham's team insists that the £4,500 figure is a starting point and may be adjusted after a consultation period. The Growth and Skills Levy, which replaced the old apprenticeship levy, will also fund other skills programmes for adults and retraining initiatives.
