We need joined-up skills system supporting people from classroom to career

Almost one million young people in the UK, one in eight, are not in education, employment, or training (NEET). Alan Milburn’s review estimates this costs the nation £125 billion annually, while leaving a 24-year-old NEET facing up to £300,000 in lost lifetime earnings. At the same time, half of business leaders say the UK’s skills system is fundamentally unfit for purpose. If we want to solve both problems, we need a decisive strategy that tackles these twin challenges together.

Economic growth depends on having people with the right skills in the right jobs. That is why careers education, skills development, employment support, and lifelong learning must be seen as parts of the same connected system, rather than separate policy challenges. A productive economy relies on helping young people make the transition from classrooms to work, while supporting adults to retrain, upskill, and adapt throughout longer, less linear careers as technology transforms the workplace.

FE providers understand this challenge, as do businesses who are already doing their part by providing work experience, offering apprenticeships, and supporting mentoring programs. They want to do more. However, business investment does not happen in a vacuum. Employers need a stable policy environment, clear incentives, and a skills system that is easy to navigate. Too often, firms encounter complexity, fragmentation, and constant short-term policy changes that undermine confidence and stifle investment.