The UK government has introduced a new, radical programme to address increasing levels of youth unemployment. In particular, this program serves young people who are defined as NEET—not in employment, education or training. Recent statistics reveal that there were 946,000 NEET individuals aged 16 to 24 in the three months leading up to September. Starting in 2021, we observed a very concerning trend in the opposite direction. As it stands today, one in eight young people in this age group are out of school and out of work.
The most recent quarter’s data shows that 12.7% of all youth ages 16-24 were NEET during that time. A third of these young people attribute this to long-term sickness or disability. This predicament is becoming more and more prohibitive to their access to jobs and schooling. The employment gap The number of young people on health and disability benefits is increasing. This alarming trend further underscores the critical need for targeted, strategic intervention.
Thankfully, UK Chancellor Rachel Reeves has risen to the occasion. In March she made the first big splash by pledging £820 million of new investment to help a new generation of young people transition from dependency on Universal Credit to finding stable, productive jobs. The joint initiative will produce 350,000 training and work experience opportunities. Additionally, it will secure 55,000 jobs in the industries projecting the greatest need beginning as early as spring 2026.
The government plans to offer tailored intensive employment support to all 900,000 young people on Universal Credit. Many of these sessions will be targeted toward adults who are currently unemployed or underemployed. After these sessions, participants will go through four weeks of intensive preparation, including training designed to boost their job readiness. An employment coach will guide each young person through six potential pathways: work, work experience, apprenticeships, broader training opportunities, learning programs, or a workplace training initiative that includes a guaranteed interview.
Chancellor Reeves championed the creation of this innovative initiative but was lambasted for its rollout. “This scheme is nothing more than taking with one hand to give with the other,” she stated.
“Every young person deserves a fair chance to succeed. When given the right support and opportunities, they will grasp them,” – McFadden
This program provides free, subsidized apprenticeship training for people aged 25 and under. It’s heavy on small and medium-sized enterprise. This is critically important, because as we shared here, the federal government released plans in September. They will provide supported guaranteed work placements for 18-21-year-olds who have been out of work or education for over 18 months.
Questions still linger on what non-compliance means. Young people who voluntarily refuse to participate in these opportunities without good cause would be subject to sanctions. This can mean the risk of losing their benefits.
“The Chancellor’s tax hikes are driving up youth unemployment, snatching a career from a generation of young people.” – Helen Whately
