£500 million expansion of Jobs Guarantee scheme needed now to tackle NEETs crisis

The proportion of young people (16-24-year-olds) not in employment, education or training (NEET) in England was 13.3 per cent in 2025 according to new Department for Education data published today (Thursday). The latest figures are slightly lower than for 2024, when the NEET rate hit 13.6 per cent, but remain a wakeup call to the Government who need to work quickly to expand youth employment support, the Resolution Foundation says.

The small decrease in NEET rates has been driven by a higher proportion of young people being in education and training. But worryingly, youth unemployment has continued to rise with 3.7 per cent of young people unemployed for up to 6 months, and 2.2 per cent unemployed for longer – up from 1.6 per cent in 2024 – and the highest rate of long-term youth unemployment since 2014.

The Government cannot wait for the results of the Milburn review or the Autumn Budget to act. Instead, it should expand the Jobs Guarantee scheme that it is currently piloting to help more young people find work sooner rather than later, at an additional cost of around £500 million a year for the next three years.^[i]

Currently the Jobs Guarantee scheme is open to 18-21-year-olds who have been on Universal Credit (UC) and looking for work for at least 18 months. If the Government broadened eligibility to all 18-to-24-year-olds who have been on UC and looking for work for 6 months, it would bring it more into line with past programmes like New Labour’s Future Jobs Fund (FJF) and the Conservative’s Kickstart programme.

The Foundation estimates an additional 185,000 young jobseekers would be eligible for an extended scheme over three years, alongside the current target of 55,000 – helping alleviate the scarring effect that youth unemployment has on opportunities later in life.

Imogen Stone, Economist at the Resolution Foundation, said:

“Today’s figures are a stark reminder that an increasing number of young people are struggling to find work.

“These young jobseekers can’t wait another six months for help, but fortunately the Government has an almost ready-made solution to hand: it could open up its Jobs Guarantee to all Universal Credit claimants aged 18-24 who have been looking for work six months or more.

“This would cost around £500 million more a year, a price well worth paying to bring down youth unemployment and help a generation get a firm footing in the world of work.