PRESS RELEASE- Benefits system distorts choices at 16- Families face financial penalties when young people take up apprenticeships.

A new report from the Social Security Advisory Committee (SSAC) finds that the benefit system is influencing post‑16 choices regarding education and training. The perverse effects risk undermining other government policy aims, in particular to reduce the number of young people not in education, employment or training (NEET).

“The report shows that when a young person leaves full‑time education to start an apprenticeship, families can face a sudden loss of social security financial support. Often the young person’s apprentice wage theoretically offsets this – although in practice, their parents will only be compensated if a lot of the pay packet is handed over to them. Sometimes, the loss is so great that the household as a whole is worse off – which means that, even if all the apprenticeship earnings were handed to the parent, the family would be poorer. This is particularly the case when the young person has a disability and the loss of social security income can be greater than the apprenticeship wage.”

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