Burnham Breaking Barriers To Youth Employment: Up To £8,000 In Support For Employers, Plus New £4,500 A Year Household Bursary

• New bursary supports young people by removing a key financial barrier to apprenticeships.  
• Thousands more college places to expand access to skills and training close to home.  
• Free apprenticeship training for all eligible under-25s from August, up to £8,000 in support for SMEs hiring young apprentices, and NICs relief for apprentices under 25 will help deliver 50,000 new youth apprenticeships.  

Thousands more young people will be able to gain the skills, qualifications and experience they need for future careers, as the government today rolls out a major package to break down barriers stopping access to technical education, training, and apprenticeships.  

Through new financial support, more college places and greater access to apprenticeships, the package will help more young people develop the skills local employers need, connect to the technical pathways being created in their area, and access the opportunities needed to build successful careers.  

The measures form part of the Prime Minister’s wider mission to strengthen the link between education and work, ensuring no young person is left behind because they lack the opportunities, skills, or support to succeed.   

Building on today’s wider reforms giving 14-year-olds greater access to technical learning and meaningful work experience, these changes will help more young people aged 16-19 continue developing practical skills and real-world experience as they move into the next stage of education and training.  

A new bursary, worth up to £4,500 per year per household, to remove a barrier that can otherwise discourage young people from taking up an apprenticeship

A new bursary, worth up to £4,500 per year per household, will remove a barrier that can otherwise discourage young people from taking up an apprenticeship, helping them build the skills and independence that lead to long-term, well-paid work.  

Apprenticeships are widely recognised to deliver skilled workers, higher productivity and stronger growth for the economy, and this bursary ensures more young people can access those benefits. 

The bursary targets the small number of Universal Credit families for whom the current system disincentivises apprenticeships

The bursary targets the small number of Universal Credit families for whom the current system disincentivises apprenticeships. A Social Security Advisory Committee report found single parents with a disabled child could lose up to £340 per week in benefits when a young person started an apprenticeship, exceeding the expected apprenticeship salary of £258 per week. The bursary addresses this shortfall, so that this is no longer a barrier to a young person taking up an apprenticeship. 

The bursary, funded through the £1 billion additional investment in the Growth and Skills Levy announced in May, will help stop young people from turning down the chance to earn and learn due to cost. 

It is part of a wider package of apprenticeship support, including the government’s decision to fully fund apprenticeship training for all eligible under-25s from 1 August, helping thousands more young people take up an apprenticeship with confidence. Alongside new support for employers taking on apprentices, these reforms will help deliver 50,000 new youth apprenticeships by the end of this Parliament.  

From October 2026, smaller firms will receive a £2,000 hiring bonus for taking on under-25 apprentices

Work and Pensions Secretary Pat McFadden said:  

“Every young person deserves the chance to build a future they can be proud of, and our welfare system should be a springboard to opportunity, not a barrier to it.  

“By providing bursaries to those who need them most and fully funding apprenticeship training, we are making sure cost is not the reason someone misses out. Coupled with up to £8,000 in financial support for employers, this is a serious investment in the next generation and in the future of our economy.”  

The Government are investing £9 billion into 16 to 19 education in 26-27

This builds on wider investment already helping colleges grow where demand is highest – the Government are investing £9 billion into 16 to 19 education in 26-27, enabling providers to grow high-quality pathways for thousands more learners.  

£287 million to create over 22,000 additional places across colleges and post-16 providers

We are now going further, investing a further £287 million to create over 22,000 additional places across colleges and post-16 providers in other areas. Working across 87 projects in England, this includes expanding construction courses, helping more young people train for careers such as bricklaying, plumbing and decorating.  

With over one million young people currently NEET – around one in eight young people in England – today’s action is another step towards ensuring more young people can stay connected to education, training, and opportunity as they move into adulthood.  

Education Secretary Lucy Powell said:  

“Too many young people face unnecessary barriers to apprenticeships, college places and training. We’re investing to change that.  

“This government is determined to help thousands more young people gain the skills, experience, and confidence they need to build successful careers.   

“The jobs of the future are already being created – and it’s our job to ensure that every young person, wherever they live and whatever their background, has the skills and support they need to succeed.”  

Boosting the number of college places, alongside much needed additional places in sixth form colleges and 16-19 academies, forms a key part of the government’s push to end the snobbery around hands-on learning. We want technical education to be every bit as valued as the academic route, so that every young person can choose the pathway that is right for them.  

By creating clearer routes from school into college, apprenticeships and skilled work, the government is making sure young people can keep building towards a successful career rather than falling out of education at 16.  

Today’s announcement is part of the biggest overhaul of support for young people in a generation. Alongside greater technical learning, more work experience, new vocational qualifications, and wider reforms to help young people into work, it will create a clearer journey from the classroom into a skilled career.  

 A new partnership between government, employers, colleges, and local leaders

Together, these reforms represent a new partnership between government, employers, colleges, and local leaders to ensure every young person can progress from education into skilled work, while giving businesses the workforce they need to grow.  

The bursary and free training for under-25s is being funded through the £1 billion additional investment in the Growth and Skills Levy, announced in May 2026. The final amount of the bursary will be confirmed in due course.  

The Milburn Review found a stark cliff-edge in how long-term unemployment affects young people’s chances of getting back into work or training. Those who’ve been NEET for less than a year have a decent shot at turning things around: 65% return to participation within the following year. However, once someone’s been NEET for over a year, that figure collapses to just 25%.

Philip Hoare, Group Chief Executive, Balfour Beatty, said: 

“Apprenticeships change lives. They open doors to skilled careers, help employers build the workforce they need and play a vital role in supporting long-term economic growth. 

“We’re incredibly supportive of the Government’s commitment to removing barriers that prevent young people from accessing these opportunities and increasing support for employers investing in the next generation. As a long-standing champion of apprenticeships, Balfour Beatty sees first-hand the difference they make to individuals, businesses and communities across the UK.”  

Abdi Mohamed, Head of Policy, Research and Influencing at disability equality charity Scope, said: 

“This bursary is a positive step which removes a real financial barrier for some disabled young people. 

 “A million disabled people in the UK want to work but face significant barriers getting into and staying in employment, so it’s encouraging to see the Government taking practical action. 

 “Life costs a lot more if you are disabled. No young disabled person should have to turn down an apprenticeship because their family would be financially worse off.”

 Brian Dow, Chief Executive, Mental Health UK, said:  

 “Recognising the barriers that can prevent young people starting apprenticeships and employment opportunities sends a really positive message. We see in our programmes that young people want to earn and learn, but it’s crucial they have the right support to make this a reality. 

“Being out of work or education can take a significant toll on young people’s mental health and wellbeing. This is another step up in providing access to apprenticeships and other pathways into employment that will help young people build skills and experience, while providing a sense of purpose, confidence, and hope for the future.

“We welcome this announcement and hope it is the first of many steps the Government takes to work with disabled people to tackle the wider structural barriers they face getting into and staying in work.” 

Dominic King-Carter, Director of Policy and Public Affairs at Carers Trust said: 

“We know financial barriers are particularly real for young carers juggling care, work and education, especially those who are disabled themselves. This is a positive step towards reducing barriers into important opportunities like apprenticeships for this group.

“There are more wins available to Government that would give all young carers the best chance of a fair future. This is another encouraging sign that this Government is willing to act to reduce barriers that young people face. We look forward to continuing to work with the Government to ensure young carers are better supported to access the education or training opportunities they want.”

Lizzie Crowley, Senior Policy Advisor ‑ Skills at the CIPD, said: 

“The new bursary is a welcome and practical step that should remove a significant financial barrier for disabled young people and their families. No young person should have to turn down an apprenticeship because taking one up would leave their household worse off. Making apprenticeships genuinely accessible isn’t just fair to the individual, it’s how we close skills gaps and build the capability the economy needs.

“Alongside wider support for youth apprenticeships, this should help more young people access the skills, experience and opportunities they need to build a successful career and help employers build the more inclusive, skilled workforce that drives better performance.” 

Simon Ashworth, Deputy CEO and Director of Policy, Association of Education and Learning Providers, said: 

“The new bursary of up to £4,500 a year is a welcome step that removes a significant financial barrier preventing some young people from both taking up and completing apprenticeship. By tackling the household benefit trap, more young people will be able to choose an apprenticeship based on their ambitions rather than their family’s finances. 

“If we are serious about reducing the number of young people who are not in education, employment or training, we have to make it easier for employers to recruit them. Fully funding apprenticeship training for eligible under-25s is a major step towards that goal and should encourage many more businesses to invest in the next generation of young talent.” 

Apprenticeships bursary is a bonus for skills development, but let’s do more to help with hiring costs, says REC

Responding to this afternoon’s announcement by the DWP on bursary support and NICs relief, Shazia Ejaz, Recruitment and Employment Confederation (REC) Director of Campaigns, said:

“The government’s focus on improving opportunities for young people and strengthening the skills pipeline will encourage businesses. Our JobsOutlook survey, published today, shows employers still want to recruit even as confidence in the economy weakens. Measures that help more young people gain skills and enter the workforce can support hiring now, but the government must also restore business confidence if it wants to unlock stronger jobs growth.

“The new bursary removes a significant barrier that can prevent young people from taking up apprenticeships. That should help more people gain the skills employers need at a time when labour and skills shortages continue to hold back growth. It will begin to refill the talent pool with young people who have the skills and confidence to succeed in the workplace. It also makes it easier for the private sector to hire, invest, drive productivity and innovate. As part of this increased provision, a key component of attracting people to apprenticeship programmes will be allowing access to shorter modular courses to suit the demands of a flexible labour market. Not everyone can or wants to do a year-long apprenticeship.

“National Insurance (NICs) relief for apprentices under 25 reduces the cost of hiring young workers. That will make a difference, but it is not a game changer. To make a real difference on lowering employer costs the NICs relief should be extended to all workers under 25 and reversing the lowering of the threshold for NICs contributions would give the jobs market a significant boost and encourage employers to recruit and invest in young talent.”

Olly Newton, Executive Director at Edge Foundation, said:

“The introduction of a bursary of up to £4,500 a year is a very welcome step which addresses a longstanding barrier that has stood in the way of a specific group of disadvantaged young people starting and completing an apprenticeship over the past two decades. As Edge’s Raising the Participation Age research found, youth poverty has been a significant issue that has driven young people to choose school or FE courses in order for their household to retain child benefit payments, including in cases where the individual may be better suited to an apprenticeship or training-in-work.

“Coupled with the new financial incentives for SMEs, a key ask of Edge’s Apprenticeships Work campaign, the new bursary will support the government’s mission to expand apprenticeships for under-25s. To promote these incentives to employers and further grow the supply of SME apprenticeships,  the campaign has called on the government to invest in a nationally co-ordinated, locally delivered network of apprenticeship brokerage across the country.”

Julian Gravatt, Deputy Chief Executive, Association of Colleges, said:

“We welcome the Department for Education capital funding announcement which will help colleges upgrade their facilities to cater for thousands of additional 16 to 18-year-olds in 2027 and 2028. The DfE capital funds supplement the money already distributed to mayoral strategic authorities (MSAs) and county councils with devolution deals. 

“Colleges will make use of these funds to prepare young people for careers in construction, engineering, health and other important sectors and this, in turn, will help companies fill vacancies while supporting the national drive for more houses, better infrastructure and a more prosperous country.

“Although this announcement of more capital funding is welcome, there is a more immediate issue for the Department for Education to address. 

“The population is still growing, and with fewer jobs and apprenticeship places for young people, the proportion of those staying in education after the age of 16 continues to rise. The number of 16 to 18-year-olds in education grew by 5% in 2024/25 and 4% in 2025/26 and is expected to grow again in autumn 2026.

“The DfE pays colleges and schools on a lagged basis for the number of students recruited in the previous academic year, and therefore doesn’t fund any extra students recruited. An AoC survey in March found that colleges expect to enrol at least 22,000 more 16-18 students in autumn 2026. 

“For the last fifteen years, there has been an extra in-year grant for those with exceptional growth to provide partial funding for extra costs. But right now, just a few weeks before the start of term, there is no clarity on whether there will be any extra funding in 2026/27, and without which, some colleges fear they will have to turn people away.”

July 2026: Financial Grants and Cash Incentives For Employers Taking on an Apprentice

• £3,000 Youth Jobs Grant: Available for any employer hiring an 18 to 24-year-old who has claimed Universal Credit for six months or longer (launched June 2026; paid directly to the employer).
• £2,000 Non-Levy Hiring Grant: Available to small and medium-sized enterprises (SMEs) recruiting an additional apprentice aged 16 to 24 (launching October 2026).
• £2,000 Foundation Apprenticeship Incentive: Extra support for employers taking on young people who need preparation before a full apprenticeship.
• £1,000 Young Apprentice Payment: For taking on an apprentice aged 16–18, or aged 19–24 if they have an Education, Health and Care (EHCP) plan or are a care leaver (paid in two instalments at 90 days and one year via the training provider).
  
  

The List of the successful projects for the post-16 and construction skills capacity funds

Here is the list of the successful projects for the Post 16 and Construction Skills capacity funds.