Financial issues are at the fore of young people’s thoughts as they shift their desire for higher education towards opportunities to earn quick and easy money now.

A study of 5,001 10-25-year-olds looked at the experiences, life chances and aspirations of this group compared to 2021 and it found the cost-of-living crisis is impacting their access to food, their mental wellbeing and opportunities in the future.

So much so that 35% said their families are struggling to feed themselves, and as such, more than a quarter of a million young people are estimated to have turned their backs on higher education over the past two years.

The study by the Co-op and children’s charity Barnado’s revealed that 22% are focused on getting a job to earn money rather than continuing their studies.

It comes as figures estimate the average student debt for those currently completing a course will top £45,000. Meanwhile, a recent PensionBee report highlighted how students starting university this year could be pensioners by the time their loans are repaid.

But the ‘Youth Opportunities Tracker: Fairer Futures’ report found there is a stronger interest in apprenticeships, rising from 40% to 44% and equating to 500,000 people.

However, when it comes to apprenticeships, there’s no requirement for them to pay the national living wage.

And the other issue is that parents lose out on child benefit if teenagers choose apprenticeships over academic alternatives.

The Co-op and Barnados are now calling on the Government to amend child benefit regulations so 16-19-year-olds who choose to take apprenticeships won’t see parents or carers lose out financially.

The partnership also aims to raise £5m to support 750,000 young people who are increasingly finding they need to prioritise their immediate needs at the expense of their long-term goals.

‘Financial compromises for future success’

Rebecca Birkbeck, director of community and shared value at the Co-op, said: “The cost-of-living has had a seismic impact on young people, with many having to prioritise basic needs over long-term career goals and aspirations. We’re seeing that many people are unable to make the financial compromises required to set themselves up for future success. Simply put, this isn’t fair.

“Apprenticeships are a key means by which we can promote social mobility, and business can play an important role in ensuring everyone has an equal chance to fulfil their potential, no matter who they are or where they are from.”

Lynn Perry, chief executive at Barnardo’s, said: “A generation of young people have been disadvantaged as a result of the covid pandemic, and the impact has been greatest for those growing up in poorer households. It widened the gap between what the most and least disadvantaged pupils in the UK achieve in school, and we must not let the cost-of-living crisis be a further barrier to young people pursuing their ambitions – whether that’s higher education or a work-based option.

“Apprenticeships can be a brilliant experience for young people – combining academic learning with practical work placements. But at a time when many young people live with their parents or carers well into their 20s, it’s deeply unfair that taking on an apprenticeship at 16 means your family faces a financial penalty. The Government must look again at this policy and make sure young people don’t have to make choices based on fear that their family will lose essential support.”