New Bursary to Support Young Apprentices

Young individuals will be expected to engage with new employment support initiatives, according to Pat McFadden, the Secretary of State for Work and Pensions. He announced that parents receiving state benefits could receive up to £4,500 annually if their child begins an apprenticeship. This new bursary aims to address a system anomaly where families might lose benefits when teenagers transition to apprenticeships.

McFadden stated that the government has an obligation to provide robust support, with a corresponding expectation that individuals will actively participate in the assistance offered. He explained that the bursary is intended to compensate for a drawback in the current system. This drawback could lead to families losing the child component of their Universal Credit if a teenager takes up an apprenticeship, especially impacting single parents or disabled teenagers under 18.

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Addressing Systemic Barriers

The work and pensions secretary highlighted that welfare reforms would involve both new opportunities and increased expectations. He described the benefits system as 'sticky', noting that individuals often remain on long-term benefits for extended periods. The new bursaries, amounting to around £4,500, are intended to help families, particularly those with a disabled child, who might otherwise face a reduction in income. This occurs because the apprenticeship salary, approximately £258 per week, can be less than the benefits lost, which could be around £340 per week.

The initiative is part of a broader effort to remove obstacles preventing young people from entering the workforce. The £30 million funding for the bursaries will come from the current departmental budget. McFadden stressed the importance of young people responding positively to the support provided, calling it a key step in removing barriers to opportunity and preventing individuals from being 'trapped in the benefit system'.

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Charities have welcomed the bursary plan, with Enver Solomon, chief executive of Nacro, describing it as a positive move towards narrowing the income gap. He emphasised the need for the application process to be straightforward and for young people to be made aware of the support. Solomon also noted the potential difficulties families face when benefit payments shift to young people who then contribute to household income.

Future Reforms and Next Steps

Further system redesign is anticipated following the autumn report from the social security minister, Stephen Timms, and disability campaigners. An interim report has already indicated that the criteria for personal independence payments require revision. McFadden indicated that a comprehensive, whole-government response would be necessary, as issues affecting young people extend beyond the Department for Work and Pensions' remit, including mental health concerns.

The government is also awaiting the second part of Alan Milburn's review, which focuses on youth unemployment and engagement with education and training. The prime minister has previously indicated a desire to make some benefits conditional on individuals taking up presented opportunities, potentially increasing the requirements for receiving benefits.