The figures come from a new report by Loughborough University, created for the Youth Futures Foundation, which warns that low-income households are at a financial disadvantage, even though apprenticeships often offer valuable career pathways.
Apprentices earn less than peers in part-time jobs, with 18-year-old apprentices typically making £6.50 per hour compared to £9.25 per hour for Sixth Form students.
Unlike students, apprentices are considered independent workers, meaning their families lose benefits that amount to around £62 a week from UC and £15.90 from child benefit.
This income gap makes it harder for families to meet essential expenses, sometimes falling below a minimum acceptable income standard – a threshold set by Loughborough’s Centre for Research in Social Policy (CRSP) – said Professor Matt Padley.
“This analysis highlights the consequences of young people taking on apprenticeships for household incomes, setting out the impact on their ability to reach a minimum standard of living,” said Prof Padley.
“Losing income from Universal Credit and child benefit when a young person begins an apprenticeship could mean a household being around £80-a-week worse off.
“The same household with a young person in full time education wouldn't have the same drop-off in income. While it is reasonable to think that a young person taking up an apprenticeship would make a contribution to household costs, decisions about whether or not to go for an apprenticeship rather than remaining in full-time education shouldn’t be based on what it will mean for family living standards.
“Our welfare system should support a range of routes through employment, education and training for all young people, not create potential barriers.”
The research shows that, without this support, a family with a young apprentice might only meet 63% of the income needed for a minimal standard of living, compared to 90% if the child were in full-time education.
However, policy changes could help make apprenticeships more financially viable, said Prof Padley.
He said: “It was good to see the announcement in the recent budget about the increase in minimum apprenticeship hourly rates from April 2025.
“But further support could include allowing families to keep child benefit for young apprentices, alongside providing clearer information about the financial effects of choosing an apprenticeship on household income.
“Adjusting these policies would enable more young people to pursue apprenticeships without financial risk to their families.
“This approach could support skill development and youth employment while promoting workforce diversity, making apprenticeships a more accessible option for young people from all backgrounds.”
Youth Futures Foundation’s Director of Impact and Evidence, Chris Goulden, said: “We know that apprenticeships can provide a positive route to employment for many young people, yet this research illuminates a lack of clarity in benefit policy and intent that could significantly affect family finances, and not help to encourage young people to take them up.
“We urge Government to engage with this report and review the overall approach to apprenticeships so that this positive option for young people is incentivised across welfare and wage policy.”