Households on universal credit are to receive new financial support of up to £4,500 a year to encourage teenagers to take up apprenticeships, the government has announced. The move aims to address an "apprenticeship cliff-edge" identified by the Social Security Advisory Committee, whereby families currently risk losing significant benefit income if a teenager starts an apprenticeship, discouraging young people from pursuing them.

The committee had previously found that a single parent with a disabled child could lose up to £339.92 a week in benefits once their teenager began an apprenticeship, with a net loss of around £80 even after accounting for weekly earnings of £258. The bursary will be funded through the growth and skills levy, paid by employers with an annual pay bill above £3 million, while small and medium-sized firms will get up to £8,000 to help cover the cost of hiring young apprentices. Work and pensions secretary Pat McFadden and education secretary Lucy Powell both framed the policy as removing barriers to opportunity, while charity Action for Children welcomed it as a "welcome step". The announcement follows prime minister Andy Burnham's pledge to reduce the number of young people not in education, employment or training, alongside plans to introduce new technical education routes for 14-year-olds from Year 10.