Resolution Foundation Backs £3,000 Youth Hiring Subsidies as 1 Million Britons Remain NEET
Updated
Updated · The Independent · Jun 28
Resolution Foundation Backs £3,000 Youth Hiring Subsidies as 1 Million Britons Remain NEET
2 articles · Updated · The Independent · Jun 28
Summary
More than 1 million young people in Britain are now not in employment, education or training, prompting the Resolution Foundation to urge targeted hiring subsidies over broad employer tax breaks.
Its report says a £3,000 youth jobs grant for 18- to 24-year-olds on Universal Credit for six months would create 2,800 extra jobs at about £36,700 each, while a jobs guarantee costs roughly £38,000 per additional job.
Those schemes are still too small to materially cut the NEET rate: quadrupling the grant to 80,000 places could generate 11,200 jobs a year, and expanding both programs could help another 37,000 young people into work.
The think tank argues scrapping employer National Insurance contributions is about 3.5 times less cost-effective, and instead calls for more grants, a broader jobs guarantee and skills-levy reforms.
The push comes as a separate review warned the youth unemployment crisis costs Britain £125 billion a year and could lift the NEET total to 1.25 million by 2031.
Given US subsidy failures, how will Britain's job grants convince reluctant businesses to hire inexperienced youth?
With a youth health crisis and failing systems, are job subsidies just a sticking plaster on a deeper wound?
One Million Young Britons Left Behind: The UK's Escalating NEET Crisis and the Urgent Need for Systemic Reform
Overview
The UK is facing a worsening NEET crisis, with over a million young people not in education, employment, or training as of early 2026. Recent data shows a sharp reversal of previous progress, placing the UK in a worse position than many European countries. Most NEET young people are now economically inactive, and both unemployment and inactivity among this group have risen significantly over the past year. This alarming trend highlights deep challenges in the UK’s support systems and signals an urgent need for comprehensive action to help young people reconnect with work or education.