Procurement could be government’s secret weapon on NEETs

Much has been said about young people’s need for earlier access to technical education, skills and training. As attention turns to 14–16 education reform and the growing NEET crisis, the government’s new social value approach offers transformative potential, using public procurement to achieve the line of sight the Prime Minister envisions for all young people to develop skills into good jobs.

The opportunity is significant. The new model will directly influence a central government contracts market worth around £90 billion each year, with potential to extend reach to the wider £385 billion annual public procurement spend. Suppliers will be assessed on skills development and job creation including supporting young people into apprenticeships and work placements. Social value will account for at least 10 per cent of the score for contracts worth £1 million to £5 million, rising to 20 per cent for those worth more than £5 million.

Businesses have called for this change. Educators, too, are seeking stronger connections with employers, particularly to provide the high-quality work experience which remains one of the most commonly cited barriers to employment for young people. We know that employers providing high-quality work experience are 77 per cent more likely to report business benefits, including stronger talent pipelines.

What needs to happen to maximise the impact of this change?

The Cabinet Office’s forthcoming guidance, alongside the government’s wider implementation of this policy, presents an opportunity to act on three fronts.

First, develop clear, codified models for social value clauses focused on early skills and careers education. The impact of these changes will depend on the quality of the engagement they generate, particularly for young people facing barriers to employment, and on whether clear yet not prescriptive detail creates an incentive for suppliers.

Reform of work experience, as set out in updated statutory guidance, offers a tangible and measurable mechanism to be embedded in upcoming guidance. Every meaningful interaction with employers can broaden horizons, build confidence and help a young person see their future in industries and occupations they may never have considered. Done well, it could support business needs, social mobility and regional economic growth simultaneously.

Second, support public bodies to adopt these models consistently.  Atkins Realis recently hosted a roundtable in which Cabinet Minister Mark Ferguson MP and other government representatives came together with those active in industry and the supply chain to explore how these changes can be embedded routinely in procurement practice and deliver meaningful outcomes for organisations of all sizes.

Nationally, the careers system is uniquely placed to turn this opportunity into action. A network of 44 careers hubs, working with schools, colleges and employers, can help buyers and suppliers to design, deliver and measure meaningful careers outreach aligned with local priorities.

Third, equip suppliers to deliver against them. The changes herald an opportunity to bring more employers into careers outreach, including the many suppliers and subcontractors operating throughout supply chains. For many SMEs, the barrier is capacity rather than commitment.

AtkinsRéalis research with 220 SME suppliers found that 65 per cent would benefit from support from larger organisations to achieve better social value outcomes. 82 per cent believe that clear, agreed principles for supply chain engagement would strengthen relationships.

Prime contractors, public bodies and large employers therefore have a key role to play in creating practical routes for participation, enabling suppliers to contribute through shared programmes, and coordinated careers activities.

Skills pathways and local growth

Through our work with The Careers & Enterprise Company, 11 Careers Hubs and regional partners, AtkinsRéalis has seen how modern work experience can widen access to job pathways, particularly for underserved young people. The West Midlands Combined Authority’s equalex pilot demonstrates how place-based coordination and clear quality frameworks make meaningful participation accessible for organisations of all sizes.

The challenge is to make social value more than a procurement requirement. It can be a powerful lever for expanding technical and vocational pathways for 14-16-year-olds, strengthening employer talent pipelines, and helping deliver the government’s commitment to guarantee work experience for every young person. And it can be usefully deployed as a key answer to the NEET challenge, succinctly articulated by Alan Milburn in his review.

The opportunity now is to make sure the new model delivers on that promise.