Earning or Learning: A New Agenda for Youth NEET Reduction

Policy Connect has today, May 18^th 2026, published the final report of its Skills Commission inquiry, Earning or Learning: A New Agenda for Youth NEET Reduction. Building on the interim findings published in December 2025, the report sets out a practical roadmap to reduce the number of young people aged 16-24 who are not in education, employment or training (NEET) in the UK.

The cross-sector inquiry examines the structural drivers of the youth NEET rate and what is required to ensure that all young people can access education, training, or meaningful work. Drawing on evidence from over 200 stakeholders, 75 written submissions, and engagement with young people, the final report develops the themes identified in the interim report into a detailed set of policy recommendations.

The report:

• Assesses the scale and changing nature of the NEET challenge, including the rise in economic inactivity linked to mental health and disability.
• Identifies key barriers to participation, including financial disincentives, limited access to vocational pathways, and gaps in early support.
• Builds on interim findings to set out a comprehensive package of recommendations across early intervention, financial support, local delivery and system reform.
• Aligns NEET reduction with skills participation, highlighting the need for a system that supports sustained engagement in education and training.

Key themes

The report identifies several key themes from the evidence as areas for reform:

• Early intervention and prevention
• Financial support and incentives
• Local delivery and infrastructure
• System reform and data

Looking ahead

The report welcomes the Government’s investment in the Youth Guarantee as a significant step forward. However, it argues that further action will be needed to address the structural drivers of the NEET rate and ensure the system supports sustained participation.

Policy Connect would like to thank all those who contributed to the inquiry, including stakeholders across education, industry, local government, and the voluntary sector, as well as the members of the Skills Commissioners and the young people who shared their experiences. We would also like to thank the inquiry sponsors the University of Derby, NOCN Group, Youth Futures Foundation, Jisc and The Institute of the Motor Industry (IMI) for making this work possible.

Lauren Edwards MP, Inquiry Co-Chair said:

“As Co-Chair of the Skills Commission’s Earning or Learning inquiry, I am proud to present a report that puts young people at the heart of our skills and employment agenda. Too many young people are currently not in education, employment, or training and the economic and human cost of that is significant. This inquiry has brought together voices from across the sector – drawing on a wide range of stakeholders, written submissions, and direct engagement with young people – to understand why, and to set out what needs to change.

The recommendations in this report offer a practical and ambitious roadmap for reducing youth NEET rates: one that asks Government, educators, employers, and support services to work in genuine partnership. I look forward to working with colleagues across Parliament and beyond to turn these recommendations into lasting reform.”

Sarah Yong, Director of Policy & External Affairs at Youth Futures Foundation said:

“The UK has faced a persistently high NEET rate for too long, with one in eight young people locked out of work or education. Reports like today’s are vital to sustaining focus and engagement on this important issue among policymakers, and it is pleasing to see the wider sector and employers coming together to discuss how to improve the system. To tackle this challenge and unlock opportunities for young people and the economy, this must be one of many conversations focused on how we shape better public policy, based on evidence of what works.”

Report author Alyson Hwang said:

“Youth NEET is not a new problem but it is one we can solve. This report sets out that the barriers young people face are structural, financial, and local: they are the result of policy choices, and they can be addressed by better ones. From reforming school accountability and vocational routes, to fixing the financial disincentives that trap young people out of participation, to restoring the local services that catch those who fall through the gaps: the recommendations in this report are practical, evidence-based, and deliverable.

I hope the report helps sustain the focus and cross-sector momentum needed to turn ambition into action for the 957,000 young people currently locked out of education, employment, and training.”

Notes to Editors

This inquiry was made possible through support from the University of Derby, NOCN Group, Youth Futures Foundation, Jisc and The Institute of the Motor Industry (IMI).

For more information on the inquiry or the wider work of Policy Connect’s Education and Skills team, please contact rhiannon.tuckett-jones@policyconnect.org.uk.

About Policy Connect:

Policy Connect is a cross-party think tank. We specialise in supporting parliamentary groups, forums and commissions, delivering impactful policy research and event programmes and bringing together parliamentarians and government in collaboration with academia, business and civil society to help shape public policy in Westminster and Whitehall, so as to improve people’s lives.

Our work focusses on five key policy areas which are: Education & Skills; Industry, Technology & Innovation; Sustainability; Health; and Assistive & Accessible Technology.

We are a social enterprise and are funded by a combination of regular annual membership subscriptions and time-limited sponsorships. We are proud to be a Disability Confident and London Living Wage employer, and a member of Social Enterprise UK.

About the Skills Commission

The Skills Commission is run by Policy Connect’s Education and Skills team. The Commission brings together Parliamentarians, leading figures from across the education sector and industry to undertake high-level research into UK skills policy making recommendations to government and industry. The Commission is currently chaired by Lauren Edwards MP, Lord Shinkwin, and Josh Babarinde MP.