10th June 2026
The Resolution Foundation argues in an article by Alex Clegg on 9 June 2027 that Britain's growing crisis of young people who are Not in Education, Employment or Training (NEET) cannot be solved simply by creating more jobs. While improving employment opportunities is essential, the think tank says government must also reform education and the benefits system if it wants to bring the UK's exceptionally high NEET rate back down.
The commentary was published alongside the interim review led by Alan Milburn, which found that almost one million young people aged 16 to 24 are currently outside work, education or training. Britain now has one of the highest NEET rates among comparable European countries.
The four main causes
The Resolution Foundation says there is no single reason behind the crisis. Instead, four major factors have combined:
worsening physical and mental health among young people;
a weaker labour market with fewer entry-level opportunities;
poor vocational education and training pathways;
a welfare system that often leaves young people receiving benefits without sufficient support or expectations to move into work or education.
Education is the missing piece
One of the Foundation's strongest arguments is that Britain's problem is not simply that young people cannot find work.
Compared with countries such as the Netherlands, Germany and Denmark, many more British young people leave education earlier, particularly vocational education.
Those countries maintain much lower NEET rates largely because more young people remain in education or apprenticeships until they are ready for work. Britain's vocational education system is described as comparatively weak and underdeveloped.
The Foundation recommends:
expanding high-quality vocational education;
directing more apprenticeship funding towards under-25s;
encouraging young people to stay in education longer where appropriate.
Benefits should provide support, not simply income
The report also argues that the benefits system needs reform.
A growing number of young people claiming health-related benefits have no work-related requirements or regular engagement with employment services. While recognising that many have genuine health conditions, the Foundation argues that too many are effectively left outside both education and the labour market for long periods.
Instead, it recommends a system that combines financial support with:
personalised employment advice;
education opportunities;
health treatment;
rehabilitation where appropriate;
regular engagement to prevent long-term disengagement.
Mental health remains critical
The Foundation accepts that deteriorating mental health among young adults has played a major role since the pandemic.
It argues that earlier intervention in schools and colleges could prevent many young people from becoming NEET in the first place. Better mental health support should therefore be viewed as an economic investment as well as a health policy.
Why this matters
The commentary stresses that becoming NEET is not usually a temporary inconvenience.
Research shows that young people who spend prolonged periods outside education and employment are:
more likely to remain unemployed later in life;
likely to earn less for decades afterwards;
more dependent on welfare;
more vulnerable to poorer physical and mental health.
These long-term effects mean the costs are borne not only by the individuals but also by taxpayers through lower productivity, reduced tax revenues and higher public spending.
Overall conclusion
The Resolution Foundation believes that reducing Britain's record NEET rate will require far more than simply improving the jobs market.
It argues that government needs a coordinated strategy that brings together employment policy, education reform, mental health services and welfare reform. Better vocational education should keep more young people learning, while a more active benefits system should help those who have already disengaged reconnect with education or employment. Countries with lower NEET rates demonstrate that combining these policies is far more effective than relying on job creation alone.
This represents a broader shift in thinking: the UK's NEET problem is seen not as a failure of individual young people, but as a consequence of weaknesses across several interconnected systems that need to work together.
Read the full article HERE