Lost in transition
This report investigates why the UK’s NEET rate has been rising since 2019, and why it has long been higher than in many other countries. After falling for much of the 2010s, the proportion of 18-24-year-olds who are not in education, employment or training (the ‘NEET rate’) climbed from 13 per cent in 2019 to 15 per cent in 2025 – equivalent to almost 900,000 young people. This sharp rise has brought NEETs to the top of the political agenda, sparking the upcoming Government review led by Alan Milburn on why young people are becoming more disconnected from work. But this recent rise is only part of the story: the UK’s NEET rate was already high compared to other countries even before it began rising.
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The Resolution Foundation is an independent think-tank dedicated to lifting living standards in the UK. We focus particularly on households with low and middle incomes; those on low pay or in precarious work; and those vulnerable to financial shocks.
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The Macroeconomic Policy Outlook Q2 2026
Since the US-Israeli strikes on Iran began nearly two months ago, global energy markets have been volatile. But the shock facing Britain has so far been smaller than that which followed Russia’s invasion of Ukraine: UK gas prices peaked at 78p per therm above pre-war levels – not 300p, as in 2022. Even so, a return to recent peaks would hit family finances hard: British households’ energy and fuel spending this year would be £11 billion higher than if prices had stayed at early-2026 levels. In light of ongoing uncertainty over developments in the Middle East, this edition of the MPO unpacks the potential impact of the shock on the UK economy, and discusses how the Bank of England and Government should respond.
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Labour Market Outlook Q1 2026
The Employment Rights Act marks the biggest overhaul of workers’ rights in a generation. But even the most ambitious employment rights will benefit workers only if they are enforced effectively. And compliance with existing labour market rights is already patchy: an estimated 445,000 jobs were paid below the minimum wage in 2025, 1.4 million workers in 2023-24 reported not receiving a payslip, and 2.2 million jobs in 2025 did not come with any paid annual leave.
Read moreLiving wage
The Resolution Foundation calculates the real Living Wage – a voluntary hourly pay rate that is based on what families need to get by. The current national rate is:
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Data
Explore our interactive housing indicators or read about our alternative estimate of UK employment.
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Resolution Ventures
Resolution Ventures exists to back innovative start-ups seeking to change the world of work for the better, and early-stage ventures seeking to improve the prospects of low-to-middle income Britain.
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