24 April 2026
Disadvantaged teens quit apprenticeships to avoid benefits penalties
For some time, the CDI has raised the anecdotal evidence of young people being put under family pressure to avoid or leaving apprenticeships as it can affect the family’s benefits income. Now, a report by the Social Security Advisory Committee confirms that disadvantaged young people – those who are disabled, are carers or care leavers – can be left “much worse off” by penalties.
The “apprenticeship penalty” affects low-income families as apprentices are classed as independent workers, meaning the family no longer receive three benefits that families with young people in full-time education will continue to receive, totalling up to £339 a week.
The Committee identified that this causes some young people to turn down apprenticeships, choosing courses that maintain their benefits or, in extreme cases, be forced to leave home to continue their apprenticeship.
The Committee recommended that the benefits rules were reviewed to avoid this “cliff-edge” in family finances, to create a more joined up approach across apprenticeships and child benefits payments.
The report also looked at factors influencing apprenticeship choice, including school influence and career guidance. It found that schools with sixth-forms “typically encouraged pupils to stay on” while the others offered broader options. The structure of careers information advice and guidance also affected how schools presented post-16 options.
Read a summary of the report on FE Week, and the full report from the Committee.
The “apprenticeship penalty” affects low-income families as apprentices are classed as independent workers, meaning the family no longer receive three benefits that families with young people in full-time education will continue to receive, totalling up to £339 a week.
The Committee identified that this causes some young people to turn down apprenticeships, choosing courses that maintain their benefits or, in extreme cases, be forced to leave home to continue their apprenticeship.
The Committee recommended that the benefits rules were reviewed to avoid this “cliff-edge” in family finances, to create a more joined up approach across apprenticeships and child benefits payments.
The report also looked at factors influencing apprenticeship choice, including school influence and career guidance. It found that schools with sixth-forms “typically encouraged pupils to stay on” while the others offered broader options. The structure of careers information advice and guidance also affected how schools presented post-16 options.
Read a summary of the report on FE Week, and the full report from the Committee.
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