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UK Youth NEETs Near 1 Million as Ministers Weigh Hiring Subsidies and Benefit Changes

A Resolution Foundation report links the surge chiefly to worsening health, prompting a push toward guaranteed placements with employer incentives.

Overview

  • New research puts 16–24-year-olds not in education, employment or training at about 940,000, up roughly 195,000 in two years and likely to top one million.
  • Inactivity due to sickness or disability has more than doubled since 2005 and now accounts for over one in four young people outside work or study.
  • The Youth Guarantee is moving ahead with a targeted backstop offering guaranteed paid work to eligible Universal Credit claimants after 18 months, with possible sanctions for refusals.
  • Ministers are examining extensions to employer National Insurance relief for under‑24s or alternative wage subsidies, alongside funded local trailblazer schemes.
  • The government is consulting on restricting the Universal Credit health element to those aged 22 and over, disability groups have raised concerns, employer polling shows 36% would hire more NEETs with incentives, and the Resolution Foundation urges caution on equalising youth minimum wage rates.