Families on advantages may get additional assist to let teenagers turn out to be apprentices
Ministers are considering easing the financial pressure on families who lose money when their children leave education at the age of 16 or 17 to take up a role
Families can face ‘substantial losses’ of welfare payments when their teenagers take up apprenticeships(Image: Getty Images/EyeEm)
Parents who receive benefits could be given extra help if their teenagers become apprentices to stop them losing out.
Ministers are considering easing the financial pressure on families, who lose money when their children leave education at the age of 16 or 17 to take up a role. The problem was highlighted last month by the Social Security Advisory Committee, which warned families can face “substantial losses” of welfare payments when young people leave full‑time education to start an apprenticeship.
It warned the losses “can reach levels that no realistic apprenticeship wage can offset” – ranging from around £17 to more than £300-per-week.
Last month, Dr Stephen Brien, the chairman of the Committee, said the welfare system can “penalise families when young people take up apprenticeships, even though this is a route that government actively encourages”. The Times reported the government is now considering targeted bursaries but it is understood no decision has been made.
READ MORE: Young people are being failed by ‘shameful’ welfare system
It comes ahead of a major report is due to be published this week on tackling the number of young people out of work, spearheaded by ex-Cabinet minister Alan Milburn. He has said the state has failed young people in a “shameful” way by “transporting them into the world of benefits” rather than helping them find work.
Mr Milburn told the BBC: “For every £25 that we spend keeping young people on benefits, we spend only £1 helping them get into work through employment support.” He added: “This is a failure of the welfare system, but it’s a failure – I’m sorry – of the school system, the skills system, the health system.”
The most recent figures showed 12.8% of all people aged 16 to 24 in the UK were not in education, employment or training (Neets) in October to December 2025. The total number of Neets was 957,000, the Office for National Statistics (ONS) said.
Over the weekend the Work and Pensions Secretary Pat McFadden also outlined plans for an extra 300,000 work placements over the coming three years. According to the government, sector-based work academy programmes (SWAPs) are transforming long-term prospects for young people.
They said an additional 13% of participants in work two years later – compared to similar Universal Credit claimants who did not take part.
Speaking about the number of so-called Neets, Mr McFadden told the Guardian: “It’s a quiet crisis, a ticking time-bomb, which risks their future working lives. It’s hardest for young people without family connections. No job because they have no experience and no experience because they don’t have a job.”
A DWP spokeswoman said: “We are determined to reverse the 40% drop in young people starting apprenticeships over the last decade. To give every young person the best start in their career, we are investing £2.5billion to tackle youth unemployment, and creating 50,000 additional apprenticeships for young people.”
