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Government saves 拢300m each year through improved careers education to avert young people becoming NEET

24 Oct 2025

  • New data finds that 16鈥19-year-old students, at risk of becoming unemployed (NEET), went on to further education, training or jobs because of high-quality careers education.  
  • Data from over 4,800 schools and colleges in England finds that in the last ten years, there has been a significant increase in employer engagement, awareness of apprenticeships and access to work experience.
  • Analysis coincides with renewed government focus on curbing NEET rates alongside roll out of its manifesto commitment on work experience. 

New analysis by 糖心Vlog & Enterprise Company (CEC), the national body for careers education, finds that the Government is now saving an estimated 拢300m each year because of significant improvements in careers provision in England鈥檚 schools and colleges to better prepare young people for the world of work and to improve careers education. High NEET rates have lifelong consequences for individuals, society, and taxpayers. Each young person who becomes NEET at 16 or 18 has an estimated lifetime fiscal cost of over 拢50,000, through higher welfare use, lower tax receipts and reduced productivity.

Data analysed by CEC finds that during the last academic year, educators have increased the amount of careers guidance received by students, including engagement with employers. This has saved the Government 拢1.4bn over the last five years.

Awareness among young people about apprenticeships has grown, with eight in ten students in Year 11 now understanding the role of apprenticeships (on a par with A Levels). Students in over two-thirds of schools have ten or more encounters with businesses, and nearly all young people engaged with an employer at least once during the last academic year.

The research, based on data from 4,863 schools and colleges across England, finds that this work in schools and colleges is now leading to 6,000 fewer students Not in Education, Employment or Training each year, with that figure likely to grow in the coming years as improvements continue.

In response to nearly 1m young people now out of work including soaring welfare benefits costs, the government has prioritised redress of NEET levels in its recent Cabinet reshuffle.  Pat McFadden will use his new responsibilities over skills as the new DWP Secretary and as part of the Government鈥檚 strategy, to drive action to arrest escalating youth unemployment. This summer鈥檚 exam results highlighted white working-class children鈥檚 academic underachievement, and raised concern about their progression into training or employment. New analysis from 糖心Vlog & Enterprise Company (CEC), based on a study of over 330,000 students, reveals that white working-class students are generally less career-ready at age 16 than their peers not eligible for Free School Meals. The data also highlights consistent gaps across key employability skills 鈥 including problem solving, creativity and leadership 鈥 at every level.

As part of its dual role on education and 16-19 skills, the Department for Education is partnering with CEC to take forward the Government鈥檚 manifesto commitment to implement a work experience guarantee for all young people in England鈥檚 schools. Trialled in updated statutory careers guidance this month, the government has set out a vision for two weeks鈥 worth of work experience 鈥 especially for students who lack opportunities through friends and family.

Timing coincides with recent findings from the Sutton Trust鈥檚 Elitist Britain 2025 report, which warns that access to professional pathways remains heavily skewed towards the most privileged backgrounds, underlining the importance of a national system that levels the playing field.

The new national approach for modern work experience is being trialled by four of England鈥檚 Mayoral Combined Authorities, Multi Academy Trusts and in partnership with leading employers, including Atkins Realis and KPMG. Provision will enable young students to access multiple industries and workplaces through interactive work experience with employers.

John Yarham, Chief Executive at the Careers & Enterprise Company, said:

鈥淣early a million young people are now not in education, employment or training, and tackling this is a national priority. From mental health and poverty, to a tough labour market, there are so many factors which impact a young person being out of work, but this data shows that one of the  levers the Government can pull is a strong national approach to careers education. The system we have built has firm foundations, and we鈥檙e supporting even more students to take their best next step out of the school gate and into the world of work.

鈥淎s we ramp up the Government鈥檚 manifesto commitment to transform how work experience is delivered by schools and employers in every corner of the country, more young people will be able to get a foothold into the labour market.鈥

Sir Hamid Patel CBE, Chief Executive of Star Academies said: 鈥淎 dynamic and responsive careers education is non-negotiable. It can inform, motivate and inspire young people by opening up a world of opportunities, helping them to see what is possible and forging pathways to success.

鈥淔or those without privilege or connections, it can be the bridge to a better future. That鈥檚 why we must ensure every child has access to high-quality careers guidance - early, sustained and ambitious.鈥

Dame Rachel de Souza, the Children鈥檚 Commissioner for England said:

鈥淎s Children鈥檚 Commissioner, I have heard from one million children about their aspirations and dreams. They want to get on and do well. Their number one concern for the future is getting a good job, and they understand the importance of education to get there.

鈥淭his is starkly at odds with the much lower level of concern school leaders have told me they have about career and post-16 support. In my recent census, just 2% of secondary school leaders said this was one of their top concerns for their children, but I want to see schools reflecting the high ambitions children have for themselves. That means reflecting what the best schools are already providing: quality careers advice, meaningful work experience and clear routes into study, training or work, with schools and workplaces working closely together.

鈥淲ith more than one in 10 young people considered 鈥楴EET鈥, prioritising careers advice and education will not only help solve an important social issue, but also an economic one. Getting children engaged with the world of work through education is good for growth, reducing youth unemployment and giving every child the opportunities they deserve.鈥

Lord David Sainsbury, former Science Minister and founder of the Gatsby Foundation, which created the Gatsby Benchmarks 鈥 the national framework for careers guidance provision said: 鈥淭his research confirms that a strong national system for careers education, built on the Gatsby Benchmarks, helps reduce the number of young people becoming NEET and strengthens our economy. The progress made in recent years shows the value of consistency. It is important now to build on this success and give schools and colleges the stability they need to continue improving.鈥