Government and Hospitality Pledge 100,000 Jobs for NEET Youth

The government and UKHospitality have announced a joint initiative to create 100,000 jobs for young people not in education, employment or training over three years. The pledge targets 18-to-24-year-olds classed as NEET, a group that now includes almost one million individuals.

Major employers including Nando’s, McDonald’s, Wagamama, Merlin Entertainments, Whitbread, and Burger King have committed to the pledge. The partnership, announced on 15 October as part of the wider Youth Guarantee, involves firms like Marriott, Compass, Parkdean Resorts, and Stonegate Group.

Scope and Target Group Defined

The program specifically aims to place 18- to 24-year-olds who are not in employment, education or training. It will deliver its target through a mix of paid work placements, lasting four to six weeks, and permanent roles with training opportunities.

This push responds to stark warnings about youth disengagement. An interim review by Alan Milburn warned of an 'entire generation' being left behind, a theme echoed in his Young People and Work report published earlier this year. Nearly six in ten young people classified as NEET have never had a job.

Industry Commitment and Employer Participation

Work and Pensions Secretary Pat McFadden stated, "happiness has long been a route into work for young people, and the numbers back that up." UKHospitality says the sector accounts for 31% of first jobs for 16-to-24-year-olds and creates around 300,000 roles for young workers each year.

The list of participating employers is extensive.

Economic Context and Industry Challenges

The initiative launches against a difficult backdrop for the hospitality sector. Industry leaders say higher payroll costs have already eliminated around 100,000 jobs over the past two years. This new jobs drive aims to counteract that trend while addressing the NEET crisis.

It follows a similar pledge made last month by major retailers, who committed to providing 100,000 work experience opportunities for NEETs. Innovative approaches are also emerging, such as Nell’s Pizza creating an online platform for six-month work experience placements.

Support Mechanisms and Incentives

To encourage participation, especially from smaller businesses, financial incentives are available. Small venues can claim a £3,000 Youth Jobs Grant per eligible hire and a £2,000 payment for each new apprentice. Employers who register with the Youth Guarantee can access funded training and a Jobs Guarantee, which covers employment costs for the first six months.

Broader business support is also being advocated. The Federation of Small Businesses is calling for the Small Business Rates Relief threshold to be lifted to £25,000. They say 28% of small employers would take on more staff if the threshold was raised, and 26% would use the savings to increase pay or benefits. Separately, UKHospitality wants the employer National Insurance threshold for the sector raised to £10,000 ahead of the 28 October Budget.

The commitment from major employers now focuses on delivering a substantial volume of work experience and permanent roles through the Youth Guarantee framework.