Tackling the growing number of young people outside education, employment or training (NEET) is rapidly emerging as a priority for the new Government.
For FBUK, the focus is welcome. We have consistently called for a stronger drive to get young people into work, shaped around the needs of local employers.
Nearly one million young people across the UK are NEET. This is a major social and economic challenge at a time when businesses continue to report skills shortages and difficulties recruiting.
The Government is right to focus on getting more young people into work. This week’s announcements build on a substantial programme already underway – and underline something fundamental to its success: businesses will ultimately have to provide the jobs, apprenticeships and training places.
For FBUK, there is much to welcome. The focus on apprenticeships, employer-led skills and creating opportunities close to home is the right one. With their deep roots in communities across the country, family businesses are obvious partners in turning that ambition into jobs and opportunities for young people.
What is the Government already doing?
The Government’s existing youth employment programme includes:
- £3,000 Youth Jobs Grants for employers recruiting eligible 18–24-year-olds who have been on Universal Credit and looking for work for at least six months.
- 300,000 work experience and training opportunities over three years.
- A Jobs Guarantee, providing eligible long-term unemployed 18–24-year-olds with six months of paid employment.
- 50,000 additional youth apprenticeships, including fully funded training for eligible young people at smaller employers. Larger employers that have used their Growth and Skills Levy allocation will also not have to pay the usual 25% co-investment contribution when taking on additional apprentices aged 16-24.
- A £2,000 hiring payment for smaller employers taking on a new apprentice aged 16–24 from October 2026.
- Existing National Insurance relief for employers taking on qualifying apprentices under 25.
What has the Government announced this week?
The Government has now added:
- A new apprenticeship bursary of up to £4,500 a year for Universal Credit households where the interaction between benefits and apprentice earnings could otherwise leave the household worse off.
- Thousands of additional college places to expand access to skills and training closer to home.
Family businesses are an obvious part of the solution
With around five million family businesses employing 15.8 million people, family firms are rooted in communities across the country and can provide the apprenticeships, first jobs and long-term careers needed to make the Government’s ambition a reality.
Unlocking that potential means making it easier for businesses to take on and train young people. FBUK’s Building Britain for Generations policy agenda sets out practical steps to do that – including more flexible use of the Growth and Skills Levy, a greater focus on work-ready skills and stronger incentives for businesses to invest in apprenticeships. It also calls on Government to consider how rising employment costs could affect employers’ willingness to hire younger workers.
But none of this works without employers.
Hiring an inexperienced young person can be a risky investment. Businesses are absorbing higher employer National Insurance contributions, substantial minimum wage increases, employment rights reforms and wider increases in the cost and complexity of employing people.
For family businesses, this sits alongside the uncertainty created by changes to Business Property Relief (BPR).
The Prime Minister’s call for businesses to work with Government to get more young people into work is one family businesses are ready to answer. But, as FBUK CEO Neil Davy told the Prime Minister last week, that partnership will only succeed if Government creates the conditions for businesses to invest, grow and recruit.
The new Government has an opportunity to strike a new deal. Family businesses can help deliver its ambitions on youth employment, skills and growth. In return, Government needs to rebuild business confidence – and reopening the conversation around BPR should be part of that partnership.
