Andy Burnham’s government is planning payments for some families receiving benefits in an effort to encourage young people to take up apprenticeships. The proposal would address a situation where some parents can lose financial support when a 16 or 17-year-old leaves full-time education.
The move comes as welfare reform becomes a major issue for the government, with ministers looking at ways to reduce the benefits bill while increasing employment opportunities for young people. The policy is part of a wider approach focused on changing how support is provided to those who are out of work.
Proposed Grants Aim to Remove Financial Barriers for Families
Under the current system, some families claiming Universal Credit can lose part of their financial support when a child leaves approved education or training. This can happen when a teenager begins an apprenticeship instead of remaining in full-time education.
According to a report by the Social Security Advisory Committee, families can lose between £17 and £339 a week in child-related support when a 16 or 17-year-old enters an apprenticeship. The committee said these losses could create pressure for households because apprenticeship wages may not compensate for the reduction in benefits.
The report stated that some young people may be discouraged from choosing vocational routes because of the financial impact on their families. It described the situation as a problem where a pathway promoted by the government as a route into adulthood could lead to a significant reduction in household support.
Government sources told The i Paper that a targeted approach to increasing apprenticeship take-up would go ahead. The plans were first proposed by Work and Pensions Secretary Pat McFadden, who remains in the role under Burnham’s government.
The government has not published details on how many families are affected by the current rules. The proposed grants are intended to address the specific group facing these financial changes when young people enter apprenticeships.
Welfare Reform Remains a Key Test for Burnham’s Government
The apprenticeship payments form part of a broader discussion about welfare reform and the balance between financial support and encouraging people into work. Burnham has said the government needs to reduce welfare spending while improving the support available to young people.
In a BBC interview, Burnham said some benefits could become conditional on people taking opportunities available to them. He said the aim was to change the nature of support rather than simply criticise people receiving benefits.
“I wouldn’t necessarily go straight to blaming those people,” Burnham said, adding that some young adults had been “quite seriously let down” because they did not receive the help they needed before leaving work.
According to figures cited by The i Paper, the number of young people not in education, employment or training has passed one million, while 84 per cent of that group said they wanted to work. The government is also examining measures to encourage businesses to invest in youth apprenticeships.
A report from youth employment adviser Alan Milburn is expected later in the year and will look at changes to the system for helping young people into work. Separately, disability minister Sir Stephen Timms is due to report on changes to Personal Independence Payment arrangements. The proposed apprenticeship grants represent one part of Burnham’s wider welfare strategy, with the government attempting to reduce barriers to employment while maintaining support for those who need it.
