Youth Futures Foundation responds to the Spending Review 2025

“It’s positive to see the extension of funding for the eight existing Youth Guarantee Trailblazers. The barriers young people face to being in good employment vary hugely so locally contextualised solutions are essential. We look forward to the initial insights the trailblazer areas produce and we are hopeful this will inform a future national offer so that young people in every part of the country will be able to benefit from this type of support.

"As development of the Youth Guarantee policy continues, it is vital that young people’s voices are placed at the heart. We’re proud to continue co-convening the Government’s youth advisory group to help ensure this happens.

"We also reiterate our support for Government’s focus on improving young people’s access to training and apprenticeships. We await further details about today’s additional investment in the upcoming post-16 education and skills strategy. Reversing the decline in under-25 participation in apprenticeships must be a core priority, especially as strong evidence tells us they are a highly impactful way for young people to prepare for and access jobs.

"Yet, with 1 in 8 young people not in education, employment of training (NEET), public policy will need to go further during this Parliament if we are to make meaningful and sustainable progress on the stubborn nature of our youth unemployment and inactivity challenge – and make the Youth Guarantee a success.

"This requires a more integrated approach pulling on skills, education, employment, labour market and youth policy levers, including deeper reform to the apprenticeship system to truly rebalance it for young people, improved transition support, and expansion of targeted interventions for the most marginalised groups. If Government is serious about meeting its missions of boosting economic growth and removing barriers to opportunity, tackling our NEET challenge is essential.

"We know that being out of work and education can have a scarring effect on young people even decades later, impacting their wellbeing, future prospects and much more. Aside from the moral imperative to help young people reach their full potential, our analysis shows that there is a significant economic opportunity in doing so. If the UK reduced its NEET levels to that of the Netherlands, who have the lowest rate in the OECD, around 500,000 more young people would be in education or work, which would provide a long-term economic boost of £69 billion.”

Barry Fletcher, Chief Executive, Youth Futures Foundation