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To reduce NEET numbers, invest in colleges, says AoC

16 March 2026

IFS funding

David Hughes, Chief Executive, Association of Colleges, said: “I welcome any new investment in supporting young people who are not in education, employment or training (NEET), and these measures will help.

"However, funding decisions made in the last few weeks mean the government is failing to invest in colleges who could do so much more to actually prevent young people from becoming NEET in the first place.

“Colleges are currently teaching 32,000 unfunded 16 to 19-year-olds and the promised real terms funding increase for next academic year has resulted in a 0.5% rate rise. Both of those will make it likely that colleges will turn away thousands of young people in September, because they cannot recruit lecturers on current pay levels and do not have any certainty that they will be funded for every learner they recruit.

“This picture is just as bad for 18 to 24-year-olds. The adult skills budget which supports this age group is less than half what it was in 2010 in real terms. Colleges are already using it to help adults of all ages with vital skills, and there simply is no more available to support more 18 to 24-year-olds with the skills they need to secure good jobs.

“We desperately need an overarching strategy for NEET beyond the youth and jobs guarantee, as a part of a comprehensive, coordinated education and training offer for 14 to 24-year-olds, with clear pathways and no dead ends as they move into the adult funding space. There is also a need for an employer engagement strategy to both direct and support employers to meet apprenticeship demand.

“Ultimately, colleges could help tens of thousands more NEET young people if they were given full funding for every student they enrol. It is not much to ask for: simply fund every NEET young person who enrols in a college to study the skills the labour market is crying out for. Doing that will support economic growth and better chances for young people. Failing to do so, will see NEET numbers continue to increase.”