PRESS RELEASE : Radical scheme to rescue NEETs [July 2012]

The press release issued by the Department for Education on 20 July 2012.

A pioneering scheme to get young people who are NEET (not in education, employment or training) back on their feet kicks off today with charities and businesses given the go-ahead to prove they can turn young people’s lives around in exchange for cash. Funding worth up to £126 million is being made available to organisations across England, who will be paid by results to get 16- and 17-year-olds back into education or training.

The programme, part of the deputy prime minister’s youth contract, is the first to use payment by results to help get NEETs re-engaged. Organisations involved have had to compete for contracts by showing they are able to get young people back on track. In return for proving they are experts in the field, they will be given freedom to tailor and provide support for disadvantaged young people in the way they know best.

Deputy Prime Minister, Nick Clegg, said:

Young people who have fallen through the net need tailored support to get back on track. We can’t treat them like round pegs being forced into square holes – if you’re young and have got to the point where you feel on the scrapheap, you need extra help to succeed in life.

Disengaged young people often have complex problems that act as a barrier to getting them learning again, which the government alone can’t deal with. But very often local charities and businesses know what’s going to help them.

That’s why we’re unlocking funding for these organisations to be as creative and innovative as they can, to do whatever it takes, to get the young people who need it most back on their feet. In exchange for this freedom, all we ask is that they get results. It’s a win-win for government, young people and the organisations involved.

Minister for Employment, Chris Grayling, said:

We think payment by results is the best way to ensure that we deliver the best possible support for young people.

It means the providers have to find the very best ways to help them if they’re to be financially successful, so it’s a win-win for everyone.

So far the youth contract has made an encouraging start, with more young people than expected finding jobs eligible for the wage subsidy.

Children’s Minister, Tim Loughton, said:

Today’s announcement is a significant step in offering up to 55,000 struggling 16- and 17-year-olds real practical support to make the most of staying in education sustainably or getting into jobs and training.

The youth contract programme is bringing together real experts with experience and a track record of supporting young people to move on to the next stage of their lives.

Organisations will receive an initial payment for taking young people on, but will only receive subsequent payments when they show progress, such as getting young people to engage with training programmes or undertake apprenticeships. The contracts on offer are worth up to £2,200 for every young person helped, with the full amount payable only if a young person is still in full-time education, training or work with training six months after re-engaging.

Today, the government is announcing the names of the charities and businesses, with expertise in supporting young people, who have successfully bid to participate. The organisations were required to demonstrate a proven track record in getting young people into education, apprenticeships, training or work with training. Local authorities will work with successful providers to target those young people in their area who will benefit most, fitting this programme with other provision on offer locally.

Providers are required to tailor their support to suit individuals’ needs. Participants will get a wide range of support and take part in projects, for example:

• Being supported to apply for education and training courses and jobs, such as through practice interviews and application-writing
• Participation in projects focusing on a range of activities, such as skills training and improving literacy and numeracy.
• Intensive mentoring and personal support on areas such as personal finance, health and wellbeing.
• In the north east, provider Pertemps People Development Group will provide a one-stop shop for integrated youth services with varying levels of support to help young people. This will include, for example, wake-up calls to help young people develop a routine, and bite-sized English and maths courses.
• In Yorkshire, provider Prospects will offer highly personalised programmes to help young people build their motivation and confidence, including intensive mentoring and personal support, for example through using a Heroes to Inspire scheme in which ex-service personnel deliver motivational sessions.

The programme, to take place over the next 3 years, will focus on at least 55,000 16- to 17-year-old NEETs with no GCSEs at A* to C, who are at the highest risk of long-term disengagement. It is intended to improve their experience and qualifications, to give them a better chance of finding work and so reduce the proportion who become unemployed in adult life.

Evidence shows that unemployment early in life can leave a permanent scar on earning potential, with the effects on careers still evident decades later. By the age of 42, someone who had frequent periods of unemployment in their teens is likely to earn 12 to 15% less than their peers.