UK Government Proposes Major Investment in Youth Apprenticeships to Combat Rising NEET Rates
On 16 December 2025, Pat McFadden, Secretary of State for Work and Pensions, wrote in The Guardian outlining the UK government's new strategy to prioritise youth apprenticeships and funding.
Between 2021 and 2024, the number of young people not in education, employment or training (NEETs) rose by almost 50%, with the highest rates in the north-east and north-west of England. Additionally, sickness and mental health issues among NEETs have increased by 76% since 2019.
McFadden highlighted the significant economic impact, estimating that a young person on benefits loses about £1 million in lifetime earnings, while the state incurs similar costs supporting them.
In response, the UK government announced a youth guarantee backed by £820 million to provide training, work experience, and subsidised employment opportunities for out-of-work youth. Apprenticeships for young people will become an explicit funding priority, with the government guaranteeing to cover all training costs of apprenticeships for small and medium-sized enterprises (SMEs).
This policy aims to halt the near 40% decline in apprenticeship starts over the past decade. It also includes expansion of short courses known as sector-based work academy programmes, focusing on priority sectors identified by employers.
Alan Milburn has been tasked to report on youth inactivity and work, with his review starting immediately and expected next year.
The article frames youth neglect as a political choice and calls for a policy shift to provide young people with renewed hope, acknowledging that artificial intelligence will both destroy and create jobs in the future.
