Our economy won’t grow with almost 1m young people left behind

Britain cannot rebuild its economy while a million young people are locked out of opportunity. This Budget must back the Youth Guarantee with real investment, or accept that wasted talent will cost us far more.

Britain cannot rebuild its economy while a million young people are locked out of opportunity. This Budget must back the Youth Guarantee with real investment, or accept that wasted talent will cost us far more.

24 Nov 2025, 20:44

Britain faces the devastating reality that nearly one million young people are not in education, employment or training; one in eight of our 16-24-year-olds. It should stop us in our tracks. Behind every number is a young person with talent and potential, yet far too many are being shut out from taking their first steps into an adulthood full of opportunity.

This isn’t just a social crisis; it’s an economic one. At a moment when Britain needs growth more than ever, potential is going unfulfilled. Estimates suggest that labour shortages could cost the UK around £39 billion a year between now and 2027, yet close to a million young people remain on the sidelines – a waste of the very talent we need.

The truth is, this crisis is not landing evenly. It is concentrated in the communities that have endured years of instability, rising costs and dwindling opportunities, including in Hyndburn which I represent. These are the places where the recovery never truly arrived after the pandemic. Most of those one million young people come from areas where chances are fewer and the barriers higher.

New polling from Teach First shows the scale of the anxiety this creates: three quarters of pupils from low-income backgrounds worry about getting into university, securing an apprenticeship or finding a good job when they leave school. A quarter are very worried – twice the rate of their wealthier peers.

That fear reflects a daily reality in our most disadvantaged communities, where the opportunities that should open doors are too often missing. A quarter say they lack access to work experience, the kind that authentically allows young people to experience what’s possible after school. A fifth don’t get the support they need for additional needs or mental health, a gap even wider for disadvantaged pupils. With mental health now a leading reason why young people are out of work, it is right the government is putting the right support in place in education , so young people can thrive and build resilience.

The government knows it isn’t talent holding these children back; it’s access. And when background determines belief in what’s possible, it isn’t just an individual setback but a loss for us all. Britain cannot afford to waste this potential.

That’s why this government’s Youth Guarantee is a vital step. As Labour’s champion for the opportunity mission, I recognise that widening opportunity is essential to the country’s long-term economic and social strength. And with the Chancellor inheriting a deeply constrained fiscal position, choices will of course be tough. But that makes it all the more important that the Youth Guarantee delivers first and foremost for the young people who need it most. When we hear more about it in this week’s Budget, I do hope we’ll see the most vulnerable children prioritised.

Businesses have a crucial role to play too. If we’re serious about building a stronger economy, employers need to step forward alongside government – offering the work experience, apprenticeships, placements and mentoring that young people need. It is brilliant that the Premier League and the Royal Shakespeare Company are among the companies bringing this to life. We must also support the schools and pupils working the hardest in the most disadvantaged communities. Growing the economy is a shared endeavour, and business has a vital part to play in unlocking the talent Britain needs.

Every young person deserves the chance to succeed, wherever they grow up. For too long, poverty has acted like a postcode lottery on ambition. The Youth Guarantee can help break that cycle, but it must be backed with wider commitments and investment – including tackling child poverty, and ensuring there is the right support for children and young adults with SEND including at college and in the workplace.

I believe this Budget can and will back the schools, pupils and communities too often left behind because we need to rebuild an economy with heart – one that grows by investing in the young people who will shape Britain’s future. Having almost one million young people locked out of opportunity is a national crisis. Bringing them in isn’t just the right thing to do; it is the smartest economic decision that Britain can make.

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