A report from the Social Security Advisory Committee (SSAC) has found that the benefits system is having a major impact on many post-16 education and training choices
Many young people face the choice of losing their family’s Social Security financial support, as the benefits system will cease to support them should they enter an apprenticeship.
This is because the system is designed to be offset by the wages the apprentice brings in, but that would mean handing most, if not all, of their wages to their family.
A difficult choice that discourages pursuing apprenticeships
If the young person instead pursues full-time education, they will retain that support from the benefits system, meaning that potentially there is pressure from families to push their children into full-time education or potentially becoming a NEET (Not in Education, Employment or Training) at a time when the government is desperate to reduce NEET levels in 16-24 year olds.
This is a particularly acute issue for the construction industry, which continually suffers from a skills shortage, causing project delays and being insufficient to replenish the workforce as the average age of construction workers steadily creeps up. Not only are there difficulties in getting young people into the industry, but firms are also struggling to take on new apprentices.
The SSAC report highlights that the benefits system has not kept pace with changes in post-16 participation in education or training and has a negative effect on young people’s apprenticeship decisions, risking their parents losing Child Benefit and certain elements of Universal Credit.
Change is drastically needed
Furthermore, single-parent households, families with disabled young people, families with young carers, care leavers, estranged young people, and other disadvantaged groups are particularly hard hit by this, as sudden changes in income can be more detrimental than to other families. Many are unaware of these consequences until the first changed payment (or lack thereof), meaning that many young people may start apprenticeships and then quickly leave them.
The findings show that the loss of benefits for families can range from £17 to £330 per week, or £884 to £17,160 per year. The SSAC recommends that action be taken and changes be made to better align the benefits system with the reality of post-16 participation in apprenticeships, and protect young people and their families, especially as many continue to rely on their families economically from 16-18 and often beyond.
Dr Stephen Brien, chair of the Social Security Advisory Committee, said: “The social security system is not neutral in the choices young people make at 16. In its current form, it can penalise families when young people take up apprenticeships, even though this is a route that government actively encourages.
“This creates a real risk that decisions are driven by short term affordability rather than what is right for a young person’s long-term future.”
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