Parents on benefits could pocket £4,500 if their child starts an apprenticeship under plan to tackle youth unemployment
Ministers said the new bursaries were part of plans to create 50,000 new apprenticeships
Parents on benefits will be given £4,500 a year if their children become apprentices.
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Ministers said the new bursaries were part of plans to create 50,000 new apprenticeships and stop school leavers falling into a life on benefits.
Alongside the bursaries, grants worth £8,000 will be given to small and medium-sized businesses that take on apprentices. The scheme is set to cost up to £1billion.
Ministers believe that by rolling out a new bursary, fewer young people will be discouraged from applying for apprenticeships, for fear their family might lose out on benefits.
The Social Security Advisory Committee has previously warned of an “apprenticeship cliff-edge”, because the benefits system “unintentionally penalises families when their children pursue apprenticeships”.
It found that in one scenario, a single parent with a disabled child could have lost up to £339.92 a week in benefits if their teenager started an apprenticeship.
If the apprentice was paid £258 per week, the household would have made a net loss of around £80.
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Work and Pensions Secretary Pat McFadden said the welfare system “should be a springboard to opportunity, not a barrier to it”.
He added: “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.”
The bursary will be funded through the growth and skills levy, paid for by employers whose annual pay bill is more than £3 million.
Small and medium-sized enterprises will also have access to financial support worth up to £8,000 for hiring young apprentices, ministers have announced.
“This is a serious investment in the next generation and in the future of our economy,” Mr McFadden said.
Education Secretary Lucy Powell said: “Too many young people face unnecessary barriers to apprenticeships, college places and training.
“We’re investing to change that.
“This Government is determined to help thousands more young people gain the skills, experience and confidence they need to build successful careers.
“The jobs of the future are already being created and it’s our job to ensure that every young person, wherever they live and whatever their background, has the skills and support they need to succeed.”
Their announcement followed a pledge by Prime Minister Andy Burnham “to get the number of young people who are not in education, employment and training down”.
In Derby on Tuesday, Mr Burnham said: “I cannot accept the situation where we have so many young people in their 20s on benefits.
“It’s just not right for them.
“And why do we have that? The support just isn’t there.”
The Prime Minister unveiled plans to open up new technical education routes to 14-year-olds, which will be put on an equal footing with traditional academic pathways.
From Year 10, pupils will be able to combine core academic subjects, such as English and maths, with technical education linked to jobs available in their area.