The Government has announced a new bursary worth up to £4,500 a year per household to help remove financial barriers that can prevent young people from starting an apprenticeship.
For some families receiving Universal Credit, a young person starting an apprenticeship could previously have resulted in a significant reduction in household benefits. In some cases, this meant that the family could be financially worse off despite the young person starting work and earning a wage.
The new support aims to change this and make it easier for more young people to take up the opportunity to earn while they learn.
Why is the apprenticeship bursary being introduced?
Apprenticeships offer young people the chance to gain practical experience, develop valuable skills and work towards a recognised qualification while being paid.
However, the impact on household benefits has created a financial barrier for some families. The Government has highlighted that certain Universal Credit households could lose a significant amount of financial support when a young person began an apprenticeship.
The new bursary is intended to help bridge this gap, so that household finances do not prevent a young person from pursuing a career through an apprenticeship.
The bursary will be worth up to £4,500 per year per household, although the Government has said that further details, including the final amount and eligibility requirements, will be confirmed in due course.
More support for young apprentices
The bursary is part of a wider package of measures designed to make it easier for young people to access education, training and employment.
From 1 August 2026, apprenticeship training will be fully funded for all eligible under-25s. The Government also aims to create 50,000 new youth apprenticeships by the end of this Parliament.
There is also support coming for smaller businesses. From October 2026, eligible smaller employers will be able to receive a £2,000 hiring bonus when they take on an apprentice under the age of 25.
Together, these changes could make apprenticeships a more accessible option for young people, while also encouraging more businesses to take on new talent.
What does this mean for families?
For families affected by the current benefits system, the new bursary could make a real difference.
Rather than having to choose between household income and a young person’s career development, eligible families will receive additional financial support to help make an apprenticeship a realistic option.
This is particularly important for young people who may already face additional barriers to entering employment or training. The Government’s wider plans also include more college places, greater access to technical education and clearer routes into skilled careers.
What does this mean for employers?
The changes could also be good news for employers looking to recruit apprentices.
Apprenticeships allow businesses to develop people with the skills and experience they need, while giving individuals the opportunity to build a career from the start.
With apprenticeship training fully funded for eligible under-25s and additional financial support available for smaller employers, businesses may have even more reason to consider taking on an apprentice.
How can Apprentice Team Ltd help?
At Apprentice Team Ltd, we support employers and learners throughout the apprenticeship journey.
Whether you’re an employer considering your first apprentice or you’re looking to develop existing members of your team, our team can help you understand the available apprenticeship programmes and funding options.
We also provide a free apprenticeship recruitment service, helping employers find suitable candidates and supporting them through the process from recruitment to enrolment.
If you’re considering an apprenticeship for yourself or want to find out more about hiring an apprentice, get in touch with Apprentice Team Ltd to discuss the options available.
Contact our team today to find out how apprenticeships could support your business or career. Click HERE
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