New Apprenticeship Bursaries Aim to Boost Youth Employment
Government introduces £8,000 grants for businesses and up to £4,500 for Universal Credit households to support apprenticeships.
Image: Eddie Pollard / AI
Sarah Connor
New government initiatives are set to offer grants of £8,000 to small and medium-sized businesses that hire apprentices, alongside financial support for families.
Ministers aim to drastically reduce the number of young people Not in Education, Employment, or Training (NEETs), a persistent challenge in youth employment. The Department for Work and Pensions (DWP) will now provide benefits directly to parents of apprentices, dismantling a critical financial barrier.
Historically, the system imposed a harsh penalty: families risked losing the child component of Universal Credit. This disincentive disproportionately affected single parents or disabled teenagers under 18.
Consider the impact: if a teenager earned the expected apprentice salary of £258 per week, the household faced a net loss of around £80. This stark reality previously deterred many from pursuing vocational training.
Andy Burnham confirmed new rules for Universal Credit households, effective this August, specifically designed to alleviate these financial pressures. Furthermore, free apprenticeship training becomes available for all eligible under-25s from August, significantly expanding access.
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.
This initiative draws funding from a substantial £1 billion additional investment in the Growth and Skills Levy, announced in May 2026. This commitment marks a strategic pivot towards technical skills development.
The Milburn Review illuminated the urgency of early intervention in the NEET crisis. It found 65% of those NEET for less than a year return to participation the following year, while only 25% of those NEET for more than a year do.
Ministers believe rolling out this new bursary will prevent young people from shying away from apprenticeships. They claim the bursary, worth up to £4,500 per year per household, will eliminate fears of family benefit loss.
Andy Burnham asserts these bursaries directly address the so-called NEETs crisis, tackling a significant societal issue head-on. Pat McFadden stated, "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."
Too many young people face unnecessary barriers to apprenticeships, college places and training. We’re investing to change that.
Lucy Powell added, "Too many young people face unnecessary barriers to apprenticeships, college places and training. We’re investing to change that." Ministers claim the new bursaries form part of broader plans to create 50,000 new apprenticeships and prevent school leavers from falling into a life on benefits.
However, Helen Whately challenges the plan, labelling it 'uncosted'. She claims it either spends money already committed elsewhere or that Andy Burnham is not being transparent about his intentions.