To:Senior Managers Responsible for Services Funded Through the Connexions Grant

Action Note

Ref No: CXP 235

Date: 7 September 2007

To:Senior managers responsible for services funded through the Connexions grant

Cc: SupportingChildren & Young People Groupcolleagues

GO Connexions colleagues

Young People’s Bridging Allowance scheme closes from 28 September 2007

For the attention of:

Connexions staff working with young people, Managers of Connexions services, and Connexions staff responsible for providing information services.

Actions:

From 28th September 2007, the Young People’s Bridging Allowance scheme for 16 and 17 year olds will close, and no new applications for it will be processed by Jobcentre Plus. From 1 October 2007, Connexions Advisers and staff that provide information to young people should stop referring them to the Bridging Allowance scheme for financial support.

Purpose of this Action Note:

To advise that, from Friday 28 September 2007, the Young People’s Bridging Allowance scheme will close. From 1 October, no new applications will be accepted by Jobcentre Plus. Young People applying up to and including 28 September will have their applications processed as normal and may be able to receive Bridging Allowance for up to eight weeks. This includes young people with disabilities, who will no longer be eligible to receive Bridging Allowance up until their 18th birthday, only for up to 8 weeks from applying on or before 28September 2007.

Summary:

The Department for ChildrenSchools and Families (DCSF) have reviewed the Bridging Allowance scheme and concluded that it can actually disadvantage some young people most in need of financial help and does not offer value for money in supporting 16 and 17 year olds to participate or achieve in learning. Ministers have agreed that the scheme be withdrawn from the end of September 2007, and no new applications will be accepted from 1 October 2007.

Please see Annex 1 for background to the scheme and more detailed reasons for its closure.

Clearance

This action note has been commented on by NACP and cleared by Jim Shaw SCYPG, Connexions Transition Team.

Contact

Su Freund, DCSF, 16-19 Financial Support, E3a, Moorfoot, Sheffield, S1 4PQ Tel: 0114 259 1097 Email:

Feedback

We would appreciate your feedback and comments on the usefulness of this note. Comments should be sent via email to Please include the reference number and title of the note in the subject box of your email.

Thank you.

Annex 1

Background

Bridging Allowance was intended to support 16 and 17 year olds in transition between training places, or waiting for a suitable opportunity. It provides similar support for these young people as Child Benefit.

The allowance is funded by DCSF, but delivered through Jobcentre Plus. It is paid at the rate of £3.00 per weekday (up to £15.00 per week) for a maximum of 8 weeks (40 days) in any one year.

Reasons for Closure

Earlier this year, DCSF reviewed the need for Bridging Allowance, including consultation with stakeholders about the potential impact of withdrawal, and consideration of its interaction with other benefits and support available to 16/17 year olds.

Benefits

In April 2006 entitlement to Child Benefit was extended to unwaged trainees on Entry to Employment and Programme Led Apprenticeship schemes. Child Benefit does not end immediately once a young person leaves school, college or unwaged training but has a “run on” period.

Bridging Allowance is not available to young people for whom there is a Child Benefit entitlement. Because of this, the group of young people eligible for Bridging Allowance has reduced considerably, and the allowance is only available to those leaving work, young offenders, and young people with disabilities when Child Benefit is not payable.

The operation of the scheme means that Jobcentre Plus considers eligibility for the Bridging Allowance before other benefits. Sometimes, Jobcentre advisers will deem that the £15 a week available through Bridging Allowance meets an individual’s hardship needs, thus making them ineligible for Jobseeker’s Allowance (Severe Hardship) for as long as the Bridging Allowance is paid.

Where the £15 does not meet hardship needs, the young person might be able to receive JSA (Severe Hardship), but the allowance is treated as income so will be offset against the benefit.

JSA (Severe Hardship) rates are currently £35.65 for young people living at home and £46.86 for those who are estranged from their families. For young people who are eligible for JSA, they are no better off receiving the allowance, and are worse off in some circumstances.

16 and 17 year olds may sometimes be eligible for other benefits, for example Income Support for prescribed groups. As with JSA, Bridging Allowance is taken into consideration by Jobcentre plus in assessing need for Income Support and other benefits which take account of income.

Stakeholders

During our consultation about withdrawing this scheme, some stakeholders expressed concern that its closure might adversely impact on some young people in severe hardship situations, asserting that young people can receive Bridging Allowance payments very quickly, whereas in their experience there can be administrative delays to a claim for Jobseeker’s Allowance (Severe Hardship).

We hope that revised guidance for Jobcentre Advisers is addressing this concern. This revised guidance was issued to Jobcentre Advisers as a result of the Treasury led review of financial support for 16-19 year olds, in which both the Department for Work and Pensions and DCSF participate. The guidance suggests that the Under 18 Advisers in Jobcentres, who should deal with benefit claims for 16 and 17 year olds, are able to make hardship payments in advance of receipt of JSA in cases where they have sufficient information to process the claim, but payments are delayed for administrative reasons.

Where there are difficulties or delays, these problems should be raised with Jobcentre Plus, or DWP, which is the government department responsible for payment of Welfare Benefits.

Conclusions

DCSF have concluded that the Bridging Allowance should be withdrawn because it no longer represents value for money in supporting 16 and 17 year olds to participate or achieve in learning. The allowance can disadvantage some young people who are most in need of financial help and provides no additional benefit to others. Ministers agreed that the scheme be withdrawn from the end of September 2007, and no new applications will be accepted from 1 October 2007.