October WorkerTech Round-Up

As the clocks turn back and the nights grow longer, attention turns to those left in the dark: the young people who’ve quietly disappeared from work and education.

Nearly a million in the UK are now classed as NEET, many struggling with poor health, low confidence, or disconnection from the systems designed to support them. This month’s newsletter is a little different. We’re taking a deep dive into what’s driving that disengagement, what evidence shows can make a difference, and how innovation might help bring this missing generation back into view. Let us know if you would like to see more of these.

We’re also bringing you a recap from portfolio company Greenworkxs’ panel on the Government’s upcoming Warm Homes Plan.

Until next month,
Aish

Deep Dive: Insights from the UK’s NEET Crisis

Across the UK, nearly 1 million young people are now classed as NEET; Not in Education, Employment, or Training.

That’s roughly one in eight 16–24-year-olds, and the highest share in over a decade. But unlike in previous downturns, this rise isn’t driven by a lack of jobs. It’s driven by growing numbers of young people who are disconnected from both work and education, and often struggling with poor mental health or long-term illness.

This month, the Resolution Foundation’s False Starts report warns that this shift marks a deeper structural problem in the youth labour market. More than half of today’s NEETs have never worked. Six out of ten are economically inactive, meaning they’re neither working nor seeking work.

The issue is increasingly found to be ill health and disability, which account for more than a quarter of all inactivity within this group. Notably, this is double the rate of two decades ago, with the citing of mental health-related issues rising fastest of all.

The Foundation’s analysis highlights how this has transformed the shape of the NEET population. The typical NEET case is no longer a school-leaver struggling to find their first job, but an older young adult (often in their early twenties) with low qualifications and limited recent experience of employment.

These trends come at a time when the labour market context for young people is increasingly worrying.

Looser labour markets in youth-heavy sectors such as retail and hospitality (where higher minimum wages and rising costs have reduced hiring) risk closing off traditional entry routes into work for young workers. Rising childhood mental-health issues, school absenteeism, and special educational needs point to more young people at risk of becoming NEET in the next decade.

The NEET Generation: How tech can move the needle

Underemployment and inactivity among young people remain among the toughest challenges in work. Many of those furthest from the labour market face health or social barriers, and traditional employment services rarely reach them.

Research from Shaw Trust estimates almost half a million NEETs are missing from official support, many distrustful of systems they see as punitive or irrelevant. Research from the Youth Futures Foundation shows the most effective programmes combine vocational training, mentoring, and real work experience.

Solving this requires new ways to identify and engage young people, with coordinated, long-term support. Here are areas where we think technology can make the biggest difference:

• Identifying hidden NEETs earlier: Local councils and government services struggle to identify young people not in work or education. Responsibly built data linking or predictive systems that link schools and local services together could help identify those at risk through signals like persistent absenteeism or low attainment.
• Facilitating wraparound support: Young people furthest from employment often face multiple barriers stacked against them – from mental health, to housing and limited access to transport.
• Connecting young people to real work experiences: Meaningful exposure to the workplace was found to be one of the strongest predictors of employment. Digital marketplaces could match young people to short placements, micro-projects, and employer mentors, especially in sectors struggling to reach diverse young talent.
• Extending engagement beyond programmes: Gamified goal-tracking, making mentoring accessible digitally, and ongoing peer-powered networks can help maintain motivation long after in-person programmes end.

Delivering the Warm Homes Plan

The latest report from the Foundation’s Net Zero team report finds that average energy bills remain around £600 a year higher than before Russia invaded Ukraine in 2022. A major reason is that policy and social levies are embedded within bills, creating what our economists are calling a “shadow tax and benefit system.” Lower-income families bear the brunt, often subsidising schemes they don’t benefit from.

While it remains to be seen how this Government and the upcoming budget contend with rising energy bills, something we are told to expect imminently is the Government’s Warm Homes Plan. An ambitious initiative, it aims to upgrade the country’s housing stock, deliver cleaner heating solutions and reduce household energy bills by around £13.2 billion in net zero investment.

Our portfolio company Greenworkx has been keeping a close eye on the development of this Plan, and is primed to train and deploy the next generation of net-zero workers to power it. Earlier this month, they convened economists, industry experts and thought leaders from the net-zero and energy efficiency space to discuss what this plan means for the labour market and for people struggling with high energy costs.

You can watch the event in full here: Greenworkx x Resolution Foundation: Delivering the Warm Homes Plan

More from the Resolution Foundation 

Economists at the foundation have been looking at the labour market closely this month. Here are a few highlights from our research:

Unfair dismissal – Day One Frights
The Foundation’s latest Spotlight raises concern about proposals in the Employment Rights Bill, currently progressing through Parliament, to scrap qualifying periods for unfair dismissal protection and replace them with “day one” rights.

• While we support the stronger protections our Economists caution that full “day one” rights could discourage hiring or increase risk aversion among employers.
• We recommend a shorter qualifying period (three to six months) to balance fairness with flexibility, aligning the UK with other OECD countries.

Update on the Real Living Wage: London and the UK
This briefing offers a behind-the-scenes look at how this year’s Real Living Wage rates are determined for London and the UK. Drawing on detailed analysis of household budgets, inflation, and regional cost pressures, the Foundation’s economists (who help calculate the Living Wage each year) outline the evidence that underpins it.

Get involved

Coming Soon: Bethnal Green Ventures Spring Programme
Our friends at BGV will begin accepting applications for their leading Tech for Good accelerator programme for early-stage startups in November. Their offering includes investment, 1:1 support and intensive mentoring from subject-matter experts within a cohort setting with brilliant mission-driven founders. Join their virtual Q&A event on Nov 25th to learn more and ask questions here.

Allia hosts…Winning Grants in 2026: What’s Changed, What Works, and How to Stand Out

Join Allia Future Business Centres to learn how to identify the right funding opportunities and where your project fits in the current landscape, as well as what funders are really looking for.

• When: Wed 5 November, 10am – 12pm
• Where: Allia Future Business Centre Cambridge Campus CB4 2HY
•  Find out more and register here

Apply for direct investment from Resolution Ventures 
We accept applications from WorkerTech ventures on a rolling basis. You can book a slot in our office hours for an initial conversation