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UK losing £244 billion through young people out of work, says report  

15 July 2026

Each young person not earning or learning costs the UK £244,000 over their lifetime, according to research published today. 

A new report from the youth charity Impetus sets out 14 recommendations designed to help tackle the chronic issue of 16-24s not in education, employment or training (NEETs), who now total more than 1 million in the UK - the highest level since 2013. 

Impetus says this is costing the country £244 billion due to, for example, lost tax revenue from their earnings. 

Support for the hidden

The report, Closing the Youth Jobs Gap, calls for better data to track whether young people are in work or study, up to the age of 24, and “supercharging” Youth Hubs to become the primary place where young people get support to move into work or education, rather than the Jobcentre.  

The report also highlights the issue of “hidden NEETs”.  

Nearly all government support for young people who are NEET is delivered via the benefits system. So those who aren’t claiming benefits are largely “hidden” from state support to help them move into work or learning.   

Up to half of those aged 18-24 who are NEET are in this group, according to the Youth Futures Foundation. 

Trusted coaches

Chernise Neo, Head of Impact and Strategic Projects at Spear, said: “Spear Centres nurture a range of local referral partners, such as social workers, other charities and probation officers, which means we reach young people the government is missing – more than one in four of our trainees last year. Around half our referrals are from Jobcentres. 

“We think making Youth Hubs the main source of employment support could work well, as long as there is a trusted adult to coach each young person, who can support and challenge them over the long term. This is a key part of what makes Spear so effective.”  

Dominic secured a job at Nando’s after doing Spear in Leeds. He says: “These coaches...were on your level and just helping you, like how an old friend puts out a hand to you when you're at your lowest, and you needed that...to get out of that hole. That's how it felt to be inspired.” 

Susannah Hardyman MBE, CEO of Impetus, said: “Our recommendations will not only begin to offset the large cost to the country of the high numbers of NEET young people,but direct resource and attention towards those facing the highest barriers to rectify the structural and systemic barriers which are holding back the potential of a generation.”

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