‘Apprenticeship penalty’ on benefits forces young people from poorer UK families to quit
Summary
Young people from poorer families in the UK are quitting apprenticeships because government benefit rules reduce their family’s benefits when they start paid training. This happens because the system treats apprentices as independent workers, cutting child and disability benefits that parents rely on, which can cause families to lose up to £340 a week.Key Facts
- The rules call a 16-year-old apprentice an “independent worker,” so parents lose child and disability benefits.
- Families can lose up to £340 a week in benefits when a child starts an apprenticeship.
- If a child stays in full-time education until 18, benefits are not reduced.
- Many families and young people avoid apprenticeships because of these losses.
- The benefit system was designed when the school leaving age was 16 and does not fit today’s rules that require training or education until 18.
- There are 957,000 young people not in education, employment, or training (called “Neets”), and youth joblessness is the highest in a decade.
- The government says apprentice wages usually make up for lost benefits but acknowledges the committee’s concerns.
- Expert advisers say the current rules hurt poorer children’s career choices by forcing them to choose money over training.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.