Pat McFadden, the Secretary of State for Work and Pensions, has launched a stinging critique of previous government policy, arguing that young people have been failed by a system that prioritised benefits over life-changing opportunities. He announced a major new focus on apprenticeships and training to tackle the UK's growing youth inactivity crisis.
The Scale of the Challenge: A Hidden Jobs Crisis
The minister revealed stark new figures showing the number of young people not in education, employment, or training (NEET) has skyrocketed by almost 50% between 2021 and 2024. The problem is most acute in regions like the North East and North West of England, followed by the East and West Midlands.
McFadden highlighted that the proportion of young people citing sickness and mental health problems as barriers has surged by 76% since 2019. He condemned a culture of "neglect," where the default response became managing people on benefits rather than actively helping them into work. "People don't live in a spreadsheet," he stated, emphasising the profound human and financial costs of inactivity.
A New Blueprint: The Youth Guarantee and Apprenticeship Push
The government's response centres on a new Youth Guarantee, backed by £820 million in funding. This initiative will offer training, work experience, and subsidised employment to young people out of work.
A core pillar is reversing the near 40% decline in apprenticeship starts for young people over the past decade. McFadden pledged to make apprenticeships for the young an "explicit priority" in funding. The state will guarantee to pay all the training costs for apprentices taken on by small and medium-sized businesses (SMEs).
Additionally, the government will expand short, employer-led courses known as Sector-Based Work Academy Programmes (SWAPs) in priority industries.
Learning from Abroad and the Cost of Inaction
McFadden pointed to international examples to show the UK's situation is not inevitable. The NEET rate in the Netherlands is just under 4%—around a third of the UK's level, while Germany's stands at 8%. "There is nothing inevitable about having one in eight young people in this position," he argued.
Citing a review by former John Lewis chair Charlie Mayfield, McFadden outlined the severe long-term impact: a young person on benefits can lose out on around £1 million in lifetime earnings, with a similar cost to the taxpayer for support.
To develop longer-term solutions, the former Health Secretary Alan Milburn has been tasked with reporting on youth inactivity next year. McFadden concluded that the prize for changing course is enormous, offering young people genuine hope and unlocking their potential for the benefit of the entire country.
