Can you claim benefits on an apprenticeship?

What is an apprenticeship?

An apprenticeship gives people the opportunity to work and train at the same time. You can apply for an apprenticeship if you’re at least 16 years old and not in full-time education.

During your apprenticeship, you’ll be able to work towards a qualification while learning on the job. You’ll also be paid a salary and given dedicated study time.

Apprenticeships come in various levels. These range from the equivalent of GCSEs to a master’s degree. They can last between one and six years.

Subjects covered can include:

• Engineering
• Construction
• Nursing
• Law
• Hairdressing
• Project management
• Marketing

Your age and the year of your apprenticeship usually determine the amount you earn. But you must be paid at least the National Minimum Wage for Apprentices. This is currently £6.40 an hour.

If you earn more than £12,570 a year, you’ll need to pay tax on your income, as well as National Insurance contributions.

Your employer might also pay an Apprenticeship Levy each month. But this won’t affect what you earn.

What financial support are apprentices entitled to?

As well as paying your salary, your employer might offer other benefits. These can include:

• Sickness pay
• Travel expenses
• A company car
• A laptop
• A mobile phone.

You might also qualify for other financial support for apprentices. The table below outlines some options:

On top of this, you might be able to claim Universal Credit if you’re on a low income. This is likely to be the case if you’re on the Minimum Wage.

Keep in mind that Universal Credit is replacing the following six benefits:

• Housing Benefit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Child Tax Credits (CTC)
• Working Tax Credits (WTC)
• Income Support

If you’re already claiming these benefits, you might still be able to claim them while you finish your apprenticeship. But you won’t be able to make a new application for benefits such as Income Support or Jobseeker’s Allowance for apprentices.

Eligibility for claiming benefits as an apprentice

Here’s what you need to know about qualifying for benefits for apprentices.

General eligibility criteria

You will usually need to be at least 18 years old to claim benefits. But there are exceptions – Personal Independence Payment (PIP) can be claimed from the age of 16.

The eligibility criteria for other benefits depend on factors such as:

• Your income
• Your savings
• Any benefits you already receive.

The easiest way to see what you could get is to use a benefits calculator. Use our benefits checking tool to get started.

Specific benefits eligibility criteria

The rules for apprenticeships and Universal Credit mean you must:

• Have a named training provider
• Be working towards a recognised qualification
• Be paid at least the National Minimum Wage for an apprentice.

You might qualify for PIP if you need help with daily activities due to a long-term illness or disability. As it’s a non-means-tested benefit, it shouldn’t be affected by your apprenticeship.

How being an apprentice affects benefit claims

While you’re completing your training, your benefits payments could be reduced.

Impact on Universal Credit

You should still be able to claim Universal Credit if you’re on a low income. But the amount you receive will gradually reduce as you earn more.

If your apprenticeship is for more than 30 hours a week, you shouldn't be asked to do any ‘work-related activity’. This means you won’t need to look for more work on top of your apprenticeship or have meetings at the Jobcentre.

But if it’s for less than 30 hours a week, you might be asked to look for more work.

This won’t apply if you have childcare or caring responsibilities. It won’t apply either if you have an illness or disability that could make it difficult for you to work 30 hours.

Interaction with other benefits

Your apprenticeship could affect other benefits you receive. This will depend on whether they are means-tested.

These benefits include:

1. Council Tax support (reduction)
2. Housing Benefit
3. Income-based Jobseeker’s Allowance
4. Income-related Employment and Support Allowance
5. Income Support
6. Working tax credits

The amount you receive from these benefits could be reduced, based on how much you earn.

Common questions about apprenticeships and benefits Do apprenticeships count as full-time education?

Apprenticeships count as full-time education. The UK government defines full-time education as “more than an average of 12 hours a week of supervised study or course-related work experience”.

How are apprentice earnings treated?

Your apprentice earnings count in the same way as earnings from any other type of employment. This means they will be considered when working out what benefits you can get.

Can I claim Housing Benefit as an apprentice?

You should be able to keep claiming Housing Benefit as an apprentice. But it could be reduced depending on your earnings.

You won’t be able to make a new application for Housing Benefit as it’s being replaced by Universal Credit.

Is financial support different for adult apprentices?

If you’re over 18, you’re likely to have access to more financial support than an apprentice aged 16 to 17. But younger apprentices can still qualify for some financial help. This includes the apprenticeships care leavers’ bursary and the Access to Work scheme.

How does an apprenticeship affect my tax credits?

Working tax credit is paid to those in work and on a low income. HM Revenue and Customs (HMRC) says apprenticeships count as being in paid work if you receive a taxable income.

But if you receive a non-taxable training allowance, your working hours won’t be classed as being in taxable paid work. So, you could lose your tax credits.

Do apprentices have to pay Council Tax?

You will usually need to pay Council Tax as an apprentice. But you could get a discount of 25% off your bill. This discount can rise to 50% if you live in a household where you are all apprentices or trainees.

To qualify you must earn less than £195 a week. You can often apply through your local council’s website. You’ll need to provide a letter from your employer and a payslip.

Conclusion: Claiming benefits as an apprentice

You can still claim benefits as an apprentice, such as Universal Credit.

To make sure you’re claiming all you can, it’s best to use a benefits calculator. Also check out resources such as MoneyHelper and Citizens Advice.

Apprenticeship funding is generally given to your employer. But you could talk to your employer and local Jobcentre about what financial support and grants are available in your area.