Is Youth Inactivity on the Rise? Uncovering the Facts

The UK government is launching an independent review led by former Labour Health Secretary Alan Milburn to address the rising levels of youth inactivity, particularly among those classified as "Neets" (Not in Education, Employment, or Training). With nearly one million young people in this category, the inquiry aims to uncover the underlying causes and explore strategies to reintegrate them into the workforce.

Last updated: 14 October 2023 (BST)

What’s happening now

The government, led by Work and Pensions Secretary Pat McFadden, is responding to what has been termed a "crisis of opportunity" for young people aged 16 to 24. This demographic has seen a significant rise in the number of individuals falling out of education or work, which has surged to nearly one million Neets in recent years. A quarter of these young people cite long-term sickness or disability as a barrier to employment, while the number claiming health and disability benefits continues to rise. The review is expected to provide insights and recommendations by next summer, aiming to address the urgent need for effective solutions.

Key takeaways

• Alan Milburn will lead a review into the rising levels of youth inactivity.
• The number of Neets is nearing one million, highlighting a significant issue for the UK.
• Long-term sickness and mental health issues are major barriers for these young people.

Timeline: how we got here

Understanding the current situation requires looking back at key developments:

• 2018: The number of young people classified as Neet begins to rise significantly.
• 2020: The impact of the COVID-19 pandemic exacerbates youth unemployment, leading to increased rates of inactivity.
• 2023: The government announces an independent review led by Alan Milburn to address the causes and impacts of youth inactivity.

What’s new vs what’s known

New today/this week

The announcement of the independent review has brought renewed focus to the issue of youth inactivity, with specific attention on the barriers faced by this demographic, particularly regarding mental health and long-term disabilities.

What was already established

It is well-documented that a significant number of young people are struggling to find pathways into employment or education, with previous statistics indicating that 16-24 year olds have been disproportionately affected by economic challenges in recent years.

Impact for the UK

Consumers and households

The rising levels of youth inactivity have broader implications for families and communities. Households may face financial strain as young members remain dependent on benefits rather than contributing to the economy. This can lead to increased poverty and limited opportunities for upward mobility.

Businesses and jobs

For businesses, the high number of Neets represents a lost potential workforce. With skills shortages in various sectors, the inability to tap into this demographic can hinder economic growth. The review aims to identify ways to enhance workforce participation among young people.

Policy and regulation

As the government prepares to publish the review's findings next summer, it is likely to spark discussions around welfare reform and employment policy. This could lead to significant changes in how young people are supported in their transition into work or education.

Numbers that matter

• Approximately 1 million young people in the UK are classified as Neet.
• Over 50% increase in young people claiming Universal Credit (UC) Health and Employment Support Allowance in the last five years.
• 80% of young people on the UC Health element cite mental health or neurodevelopmental conditions as reasons for their inactivity.

Definitions and jargon buster

• Neet: An acronym for "Not in Education, Employment, or Training," referring to young people who are disengaged from the workforce and educational opportunities.
• Universal Credit (UC): A welfare benefit in the UK designed to support individuals and families with financial assistance, replacing several older benefits.

How to think about the next steps

Near term (0–4 weeks)

In the coming weeks, stakeholders will be looking for initial indications of the review's scope and focus areas. This may include public consultations or requests for evidence from young people and organisations working with them.

Medium term (1–6 months)

As the review progresses, expect to see discussions around potential policy changes or pilot programmes aimed at reducing the number of Neets and improving youth employment opportunities.

Signals to watch

• Public statements from the Department of Work and Pensions regarding the review's findings.
• Changes in youth unemployment statistics that may reflect the impact of new initiatives.
• Responses from educational institutions and businesses regarding their support for the review's recommendations.

Practical guidance

Do

• Stay informed about the review's progress and findings.
• Engage with local initiatives aimed at supporting young people's employment and education.
• Support advocacy groups pushing for youth engagement and employment opportunities.

Don’t

• Ignore the rising trend of youth inactivity; it affects the economy and society as a whole.
• Assume that all young people can easily access employment opportunities; many face significant barriers.

Checklist

• Connect with local youth organisations to understand their challenges and how you can help.
• Monitor the government's response to the review and its implications for youth policy.
• Consider volunteering or mentoring opportunities to support young people in your community.

Risks, caveats, and uncertainties

While the review aims to provide comprehensive insights, there are inherent risks in addressing such a complex issue. The effectiveness of recommended policies will depend on various factors, including political will, economic conditions, and the ability to accurately assess the needs of young people. Additionally, ongoing debates around mental health diagnoses and their connections to benefits may complicate the implementation of any new strategies.

Bottom line

The independent review into youth inactivity, led by Alan Milburn, represents a critical step towards addressing the alarming rise in the number of Neets in the UK. By uncovering the barriers faced by young people and proposing actionable solutions, the government aims to transform lives and improve the economic prospects of a generation. The next steps will be closely watched as stakeholders await the review's conclusions and their implications for policy reform.

FAQs

What does Neet mean?

Neet stands for "Not in Education, Employment, or Training," referring to young people who are disengaged from the workforce or educational opportunities.

Why is youth inactivity increasing?

Factors such as long-term sickness, mental health issues, and a lack of available opportunities have contributed to the rising levels of youth inactivity in the UK.

What is the government doing about it?

The government has launched an independent review to investigate the causes of youth inactivity and explore ways to assist young people in returning to education or employment.