Resolution Foundation Rejects £5.1 Billion UK Youth Tax Cut as NEETs Top 1 Million
Updated
Updated · The Guardian · Jun 29
Resolution Foundation Rejects £5.1 Billion UK Youth Tax Cut as NEETs Top 1 Million
3 articles · Updated · The Guardian · Jun 29
Summary
More than 1 million young people are now classed as NEET, and the Resolution Foundation said reversing employer tax rises or cutting under-21 minimum wages would do little to improve hiring.
Its report found scrapping employer NICs for under-25s would cost £5.1 billion to create 38,000 jobs—about £132,000 per job—because most under-21s already attract no employer NICs.
A youth minimum-wage rollback would add only 15,000 jobs while cutting living standards, with 230,000 workers aged 16 to 20 losing a combined £379 million a year.
Instead, the thinktank urged ministers to expand the new £3,000 youth jobs grant from 20,000 to 80,000 places, which it said could create 11,200 extra jobs annually at roughly £36,700 each.
The recommendations are likely to feed into Alan Milburn's autumn review, as business groups and figures including Tony Blair argue Labour's higher employment costs are deterring youth hiring.
Given US subsidy failures, how will Britain's job grants convince reluctant businesses to hire inexperienced youth?
With a youth health crisis and failing systems, are job subsidies just a sticking plaster on a deeper wound?
One Million Young Britons Left Behind: The UK's Escalating NEET Crisis and the Urgent Need for Systemic Reform
Overview
The UK is facing a worsening NEET crisis, with over a million young people not in education, employment, or training as of early 2026. Recent data shows a sharp reversal of previous progress, placing the UK in a worse position than many European countries. Most NEET young people are now economically inactive, and both unemployment and inactivity among this group have risen significantly over the past year. This alarming trend highlights deep challenges in the UK’s support systems and signals an urgent need for comprehensive action to help young people reconnect with work or education.