Providing Opportunity

You may have heard the term NEET. It is often used by members of the House of Commons when commenting on the state of the economy or the need to improve productivity and growth.

So, what does NEET stand for?

A NEET is a person aged between 16 and 24 who is not in education, employment, or training. The current number of 16–24-year-olds identified as NEET is estimated to be close to 1 million. Or 1 in 8 of all people in that age group.

There is significant Government focus on reducing this number, with the belief that doing so will help cut the benefits bill and boost productivity and growth. It’s difficult to argue with this logic as nearly a million young people appear to be economically inactive and could, if engaged in work, make a huge difference to the health of the economy.

So, what can be done?

First, we must identify these NEETs.

Second, we must create a range of opportunities that are attractive alternatives for young people.

And third, we must ensure these opportunities are worthwhile to allow individuals to enjoy the benefits of earning a living. That might sound simple, but it’s far from easy.

Even when people are in education, someone eventually has to offer them a job for them to experience the benefits of work. This applies to all of us, whether we’re leaving school, college, or university. That offer means an employer is willing to invest in a young person’s potential. And it also means the offer must be attractive. This works well in an ideal world, or when the economy is strong. The problem is, the world is rarely ideal, and economies inevitably face peaks and troughs.

So back to Government, and how it can help address the NEET challenge of getting nearly a million young people into work?
It’s a big task with no simple solution. But what small steps can we take to start?

While apprenticeships aren’t a cure-all, they remain an attractive initiative for both young people and employers. But without employers offering apprenticeships, there is no apprenticeship system. So, what incentives currently exist for employers?

At present, the Government pays £1,000 to employers who take on an apprentice aged 16–18, or a young person aged up to 24 who is leaving care or has an Education, Health and Care Plan (EHCP). In addition, employers don’t pay National Insurance contributions for apprentices under the age of 25 who earn less than £50,270 per year. This represents a saving of 15% of the apprentice’s wages.

If more employers embraced the benefits of taking on apprentices, this would reduce NEET numbers, provide valuable opportunities to young people, and help build a skilled workforce for the future.

A key component of building that future workforce is the need for realistic progression routes. For employers to get the most from their apprenticeship programme, they need to consider what happens next for the learner. One effective approach is to map out the career pathway from the start; progressing from entry-level roles to more advanced programmes such as Team Leading, Project Management, or Coaching.
This can also include increasing levels of responsibility, matched by enhanced learning opportunities, as apprentices grow into key members of the workforce.

It’s a powerful combination for both the employer and the employee.

Read about the impact of this kind of investment by one of our customers, and how it positively affected both their business and their apprentice.