New Deal moment needed to tackle ‘Neets’ crisis, Lord Blunkett suggests

Britain needs a New Deal-style moment for young people to tackle the Neets crisis, former Cabinet minister Lord David Blunkett has suggested.

The call follows last week’s sobering report by Alan Milburn into the over one million young people not in employment, education or training (Neets). The former Blair-era minister warned the UK faces a “lost generation” with a staggering £125billion hit to the country’s economy without urgent government action.

Writing in The Mirror, Lord Blunkett said putting young people at the heart of government infrastructure plans would be key to solving the crisis. This includes construction of new schools, transport networks, hospitals, and offshore wind plants across all parts of the country. It is estimated a workforce of between 629,000 and 706,000 will be needed over the next five years to work on the projects.

OPINIONDavid Blunkett

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Mr Blunkett said: “I am reminded of President Roosevelt and the young Americans locked out of economic prospects in the 1930s. Roosevelt’s solution was to build, and the New Deal gave that generation a stake in the future of their country.In 1997, the Labour government took on a more modest challenge of ensuring learning and earning for a quarter of a million youngsters, working with employers and education providers. Britain is now at a similar juncture, and investment in skills will be vital.”

Over the weekend, Wes Streeting said he would be open to reversing the increase in employers’ national insurance contributions introduced by Rachel Reeves in her first Budget in order to boost employment, particularly among young people.

The ex-Health Secretary, who is expected to enter any future Labour leadership contest, told The Sunday Times: “I think we should be thinking actively about how to incentivise, whether that’s through targeted reduction in employers’ national insurance or other kinds of recruitment and retention incentives.”

But Pat McFadden, the Work and Pensions Secretary, told Sky News on Sunday: “On national insurance, I read his interview and he thinks there should be a tax break I think for younger workers. There already is one of course – any employer who hires a young person under the age of 21 doesn’t pay employers’ national insurance at all.”

Addressing Mr Milburn’s report, Mr McFadden said: “He’s clear in the report that the issue with youth inactivity is much more long-term and deep-seated than any decision taken in the last year.”

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He said: “Now, it’s a fair point of debate to say maybe we should expand that or do something with it, but like every other call for a tax change, there’s a cost to these things. You have to net these things off. If you want to pull one lever in the tax basket, as it were, there will be consequences.”

Separate research published today also shows young people face a “growing crisis” with rising costs and fewer youth clubs and community spaces leaving them isolated and disconnected. The Roundhouse arts venue and youth charity said a study of more than 1,000 people aged 18-30 painted a “worrying picture” of life for many young people in Britain.

Opportunities to meet, create and collaborate in person have sharply declined, with fewer opportunities to connect, be creative and build confidence beyond school or work than previous generations, the research said.

Comedian Jack Rooke – an alumni of the Roundhouse – said: “As someone who benefited from a wide pool of creative spaces and resources when I was starting out, it’s worrying to see how many of those opportunities have disappeared. The research shows that young people are crying out for places where they can connect, create and build confidence.

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“As a Young Creatives Commissioner, I want to help make sure that access to creativity isn’t determined by your postcode, background or what you can afford. We need to rebuild the pathways that help young people find their voice, develop skills and properly imagine a future for themselves, in any industry, creative or not.”