The Labour government under newly appointed Prime Minister Andy Burnham has confirmed a new bursary scheme offering up to £4,500 to families receiving Universal Credit whose children commence apprenticeships. This initiative aims to compensate households that would otherwise lose between £17 and £330 per week in benefit payments once their children begin work-based training.
This financial support is anticipated to assist several thousand families across the country. By providing this bursary, the government seeks to remove barriers to apprenticeships, ensuring that families do not experience a drop in income when young people take up these valuable opportunities.
Enver Solomon, Chief Executive of the social justice charity Nacro, welcomed the announcement, stating:
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“If more young people are to take up apprenticeships it is vital their family isn’t worse off, so introducing a new bursary is a welcome step towards narrowing the income gap.”
He emphasised the importance of making the application process straightforward to ensure that no young person is denied support due to lack of awareness or complex procedures. Solomon also noted the challenges some families face when responsibility for contributing to household income shifts from parents to young workers.
Prime Minister Burnham expressed his desire to avoid “crude cuts to benefits to get the welfare bill down,” explaining that such measures often exacerbate hardship and lead to higher public expenditure elsewhere.
Work and Pensions Secretary Pat McFadden highlighted the government’s commitment: “By providing bursaries to those who need them most and fully funding apprenticeship training, we are making sure cost is not the reason someone misses out.”
Meanwhile, Helen Whately, Shadow Work and Pensions Secretary, welcomed the support for apprenticeships but criticised the plan for lacking clear funding details. She remarked, “It is spending money already committed elsewhere. So, either it is another unfunded announcement, or Andy Burnham is not being straight with us about his plans.”
Addressing concerns about youth employment, Mr Burnham stated he is “on a mission” to reduce the number of young people not in education, employment, or training (NEETs), noting that current trends show an increase, which he aims to reverse.
This bursary scheme represents a significant development in government support for apprenticeships, aiming to encourage more young people into vocational training without financial disadvantage to their families.