On GCSE results day, the Federation of Small Businesses (FSB) urged urgent action to prevent wasted potential, warning that young people who have spent years preparing for exams deserve more than unemployment.
New figures show 948,000 16 to 24-year-olds across the UK are not in education, employment, or training (NEET). This marks a 25,000 increase (2.7%) from the 923,000 recorded between January and March of this year.
The UK’s largest business group is highlighting that whatever the grade, young people should be given opportunities to continue in education, start training or a job, or launch their own business.
FSB research shows that almost 60% of young people are currently interested in owning a business, but only 16% actually have a business or are in the process of setting one up.
The business group is now calling for the Government to back measures that open up routes into work, training or entrepreneurship – potentially helping 100,000 young people every year:
- Launch a New Traders Allowance, offering tailored support and increased payments to help them transition into entrepreneurship. The new scheme, which would be a more effective and ambitious replacement for the New Enterprise Allowance, should be available to all young people not currently in work.
- Introduce a new scheme based on the Future Jobs Fund, targeting those experiencing or at risk of long-term health related inactivity. This would include subsidised work experience to help young people out of work to get back into employment.
- Offer small employers a £3,000 incentive to hire an apprentice under 25. Almost half of small business employers say this would encourage them to take on apprentices, helping thousands more to invest in the next generation.
Federation of Small Businesses (FSB) Policy Chair, Tina McKenzie, said: “The latest NEETs figures paint a worrying picture of those finding it difficult to find work or get back into the system, so the government needs to act.
“Creating a New Traders Allowance could give a great opportunity for young people to get into work and take control of their future by starting their own business. We want the Department of Work and Pensions to get behind this and make sure the Youth Guarantee is widened to include proper support for anyone keen to give entrepreneurship a go.”