A new bursary will allow households receiving Universal Credit to claim up to £4,500 per year when a 16‑to‑18‑year‑old family member begins an apprenticeship.
The payment is intended to offset the loss of benefit income that occurs when a young person leaves full‑time education for paid training. It targets a small group of families who are discouraged by the current benefit system and is expected to reach only a few thousand households.
Funding comes from a £30 million pot drawn from the growth and skills levy, which applies to employers with annual pay bills above £3 million. The bursary is part of a £1 billion investment announced in May, and the final amount will be confirmed later.
A report by a national advisory committee highlighted that benefit losses when a child starts an apprenticeship can range from about £17 to over £330 per week, depending on household circumstances. For example, a single parent with a disabled child could lose up to £340 a week in benefits, while the apprenticeship salary would be £258 a week.
The committee warned that the social security system can penalise families when young people take apprenticeships, even though the government actively promotes the route.
The Secretary of Work and Pensions said that by providing bursaries to those who need them most and fully funding apprenticeship training, the government is ensuring that cost is not a barrier to participation.
From 1 August, the government will fully fund apprenticeship training for all eligible under‑25s. Starting in October 2026, small firms will receive a £2,000 hiring bonus for
