New Report from the Fedcap Community Impact Policy Institute Advocates a National Youth Employment Program for the UK

Fedcap today published its latest report from its Community Impact Policy Institute advocating a national youth employment program for the UK that integrates skills development, mental health support, and meaningful work experience.

“Recommendations to End Youth Inactivity in the UK: A National Framework for Re-Engagement”, builds on Fedcap’s integrated approach to supporting young people to improve their economic mobility - providing structured, personalized support that combines employability services, skills development, and health interventions.

A sharp increase in youth unemployment with factors such as rising mental health, the COVID-19 pandemic and systematic challenges in young people navigating the system, has left nearly one million young people aged 16-24 not in Education, Employment or Training (NEET) or otherwise economically inactive, creating a national challenge that demands an immediate response.

The report makes 10 recommendations based on Fedcap’s experience and insights into how young people move between systems and where support structures can be strengthened, including:

• A National Youth Employment Program for 16- to 24-year-olds that integrates skills development, mental health support, and meaningful work experience
• Strengthening and expanding Youth Hubs that co-locate careers guidance, skills provision, employer engagement, and health and well-being services in accessible community settings
• Embedding Mental Health and Well-being Support, ensuring timely access to both clinical and non-clinical services, particularly during critical transitions such as the move from youth to adult support systems

“The findings of this report make clear that youth inactivity in the UK is not driven by a lack of aspiration, but by systemic gaps that emerge too early and persist for too long,” said Christine McMahon, President and CEO of Fedcap. “With youth unemployment rising from 10.8% to 15.3% in just three years, nearly one million young people now disconnected from education or work, and growing mental health pressures, the data point to a system that too often intervenes late or inconsistently. Where mental health barriers, reduced access to entry-level jobs, and fragmented careers guidance intersect, young people can quickly fall out of view.”

She added, “The report underscores that addressing youth inactivity requires a coordinated national framework — one that embeds mental health as core infrastructure, strengthens early intervention within schools, expands meaningful work experience, and creates clear, credible pathways into employment. This is not a marginal issue; it is a national economic and social priority that demands sustained, cross-system action.”