Yesterday, the Government thanked charities and campaigners who had previously highlighted the risk that families could lose vital benefit income if a young person started an apprenticeship.
Nacro has welcomed the announcement of a new bursary of around £4,500 a year to help bridge the gap, but warned the rollout needs to be carefully monitored to ensure it does not create new financial disincentives for young people taking up apprenticeships.
Enver Solomon, Chief Executive of Nacro on the announcement:
“Action to address the financial disincentives which which put young people off taking up apprenticeships is long overdue. 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.
“As the new scheme is rolled out, the government must ensure it is as easy as possible for young people to apply, and that nobody loses out because they were not directed towards support.
“The Government must also set out how the new scheme will be targeted at family finances. We know in families where increased wages are greater than the reduction in benefit payments there can still be real difficulty as payments shift from parents to young people who have to take on the responsibility of contributing to overall household income. Given this the rollout should be carefully monitored to see if there remains any disincentive to new apprenticeships.”
