Apprenticeship 'penalty' forces young people from poorer families to quit training
UKPulse Local Desk
Government advisers call for review of rules that cause loss of household income when a child takes up job training, leaving some families £340 a week out of pocket.
- Young people from disadvantaged backgrounds are abandoning apprenticeships due to a welfare 'apprenticeship penalty'
- Benefit rules classify a 16-year-old apprentice as an 'independent worker', leading to loss of household income
- Government advisers call for review of these rules
Young people from poorer UK families are being forced to abandon valuable apprenticeships due to a little-known welfare rule that can leave their households out of pocket by up to £340 a week.
The 'apprenticeship penalty' is caused by benefit rules that classify a 16-year-old apprentice as an 'independent worker', leading to a loss of household income.
Government advisers are now calling for a review of these rules, which they argue can be a major barrier to social mobility.
The apprenticeship scheme is designed to provide young people with valuable work experience and skills, but the current system is failing to support those who need it most.
Why this matters: This issue affects thousands of families across the UK, where parents are struggling to make ends meet. A review of these rules could have a significant impact on social mobility.
What this means for you: This story may affect household budgets, bills, savings, benefits or financial planning depending on your circumstances. Check whether the change applies to you before making financial decisions.