The 'lost generation' label has long been applied to the estimated one million young people in the UK who are not in education, employment, or training (NEETs). New government initiatives aim to tackle this issue head-on, with a focus on supporting both employers and young jobseekers. A fresh wave of programmes has commenced, promising to provide much-needed support for those struggling to enter the workforce.
Among these new initiatives is a youth jobs grant that allows any employer to claim £3,000 for taking on an 18- to 24-year-old who has been claiming Universal Credit and actively seeking work for at least six months. This incentive aims to encourage businesses to offer opportunities to young people facing barriers to employment. Meanwhile, Andy Burnham, Mayor of Greater Manchester, is championing a shift in power and funding from Whitehall to local authorities, arguing that local solutions – like Manchester's 'Working Well' programme – are more effective at tackling unemployment.
The jobs guarantee scheme, with an investment of £2.5 billion over three years, also began recently. This programme provides full coverage of wages and associated costs for employers who hire young people aged 18-24 who have been out of work for more than 18 months. Following 13 weeks of unemployment, participants will be placed on an 'intensive work search' programme, with support from a personal coach. This comprehensive support includes guaranteed access to apprenticeships, work experience, vocational training, further education, or Sector-Based Work Academy Programme (SWAP) – which offers up to six weeks of vocational training and a guaranteed interview for a genuine vacancy.
However, not everyone is convinced that these new schemes will be effective. The Resolution Foundation has expressed concerns about the £3,000 youth jobs grant, suggesting it could cost £36,700 per additional young person employed – a phenomenon known as 'deadweight' cost. Conversely, the jobs guarantee, which targets harder-to-hire young people, has received a more positive assessment from the Resolution Foundation, estimating it could create an additional 17,500 jobs annually at a similar per-job cost to the grant.
The new programmes draw comparisons with Labour's highly successful New Deal for young people, launched in 1998. That initiative surpassed its target, helping 339,000 under-25s into employment by October 2001, according to the National Audit Office. Its success was attributed to the positive approach of newly trained work coaches who offered genuine choices and instilled optimism in young jobseekers. The current government's emphasis on enhanced training for work coaches for the new youth guarantee suggests an attempt to replicate this successful model.