Updated: 22 March 2025
Youth NEETs: A Major Economic Challenge
The current discussion on welfare changes often overlooks a significant economic and societal problem: the one million young individuals not engaged in education, employment, or training (NEET).
For genuine progress in growth, output, and national resurgence, addressing this issue must be a primary focus of government policy.
The Scale of the Problem
This is not a trivial matter. Currently, one in seven young people are NEET, with a higher concentration in disadvantaged communities neglected for years.
The economic repercussions are unsustainable, encompassing not only welfare expenditure but also diminished productivity, unrealized potential, and the enduring detrimental effects of early joblessness.
To effectively address Britain’s financial difficulties, providing these young individuals with prospects is crucial.
Shocking statistics: One million young people are currently NEET – not in education, employment, or training.
A Successful Intervention
Evidence suggests solutions exist. In 2016, my family business supported a struggling school in a deprived area, previously underperforming.
After a decade of poor results and low enrollment, we implemented a blend of academic learning and vocational skills, equipping students for both examinations and future careers.
Within three years, student intake tripled. Today, the school is oversubscribed, with impressive results last year: 98.5% of 16-year-olds and 100% of 18-year-olds successfully transitioned into employment, apprenticeships, or further education.
Proposed Tax Rebate Solution
This achievement can be expanded nationally. The Centre for Social Justice proposes a targeted tax incentive for businesses that employ and train young individuals, potentially halving NEET numbers.
Their analysis indicates that over five years, this strategy could yield a net gain of up to £23.1 billion for the Treasury. For every £1 of tax relief, an estimated £4.76 would be generated in economic benefits.
Approximately 75% of these savings would come from reduced welfare payments, alongside supplementary advantages such as increased tax revenues and decreased demand on further education institutions.
Economic Imperative
In an era of intense scrutiny on public funds, this represents an economic opportunity that the government cannot afford to disregard.
Equipping even a portion of these young people with the necessary skills and support to join the workforce would have a transformative effect on national economic growth.
Instead of allowing young people to become reliant on long-term welfare, our focus should be on providing them with the tools for early success.
The Nieper Employability Benchmarks offer a potential framework, incorporating practical skills into school curriculums to ensure young people are job-ready upon leaving education.
Seizing Economic Opportunity
A government committed to growth should view youth unemployment not as a societal burden but as an economic prospect to capitalize on.
Failure to act risks trapping another generation in wasted potential, economic stagnation, and societal decline.
Conversely, success in providing young people with the necessary training, confidence, and pathways can unlock untapped talent, stimulate economic growth, and maintain the UK’s global competitiveness.
This is a critical social mission of our time. The only question is whether the government will embrace it.