In today's Britain, a crisis is brewing, and it's one that has been years in the making. The country is facing a stark reality: a generation of young people who feel left behind, with a sense of injustice and a lack of faith in their future. This is not just a youth unemployment issue; it's a symptom of a much deeper problem, one that has its roots in the austerity years and a failure to invest in the building blocks of a fair and prosperous society.
The Cost of Austerity
The post-2008 crash and the shadow of the Covid pandemic have left a lasting impact on Britain's youth. Public services, once a pillar of support, have been eroded, and living costs are rising. The AI revolution, a potential game-changer, is adding to the uncertainty. And let's not forget the looming climate crisis, a constant reminder of the challenges ahead.
A Million Lost Talents
Alan Milburn's review on youth unemployment sheds light on a staggering statistic: Britain is missing out on the talents of a million young people who are not in education, employment, or training (NEET). This is not just a jobs market problem; it's a societal issue with far-reaching consequences. The building blocks of a just economy are crumbling, and the cost of this failure is immense.
Early Years, Lasting Impact
The roots of this crisis can be traced back to the earliest years of a child's life. Milburn's review highlights how the risk of becoming NEET can be identified in preschool. Looking back at the past 16 years of education policy, youth services, and public sector changes, we see a pattern of cuts and neglect. Funding has been slashed across the board, with youth services in England suffering a 76% reduction, resulting in the closure of thousands of youth clubs and the loss of vital social workers.
A Tragedy of Misplaced Spending
Britain's approach to societal issues has been reactive rather than proactive. Instead of investing in prevention, the country has ended up allocating vast sums to manage the consequences. Take the NEET crisis, for example. For every £1 spent on employment support for young people, the state spends £25 on benefits. This is a tragic waste of resources and an indication of a system in crisis.
The Sure Start Story
The story of Sure Start, a network of family hubs, is another cautionary tale. The Conservatives' decision to scrap this initiative, supposedly to save money, has had the opposite effect. As funding dried up, spending on looked-after children and safeguarding increased significantly. The cost of helping disadvantaged families didn't disappear; it simply shifted from prevention to crisis management.
A Preventive State: The Way Forward
The solution lies in rebuilding what Demos calls a "preventive state." This model involves investing in the foundations of society to stop problems before they start. The economic, fiscal, and social benefits of such an approach are substantial. Take the NHS, for instance. Up to 40% of its budget is spent on treating preventable conditions. Restoring the nation's health to 2014 levels could boost GDP by 2% and generate a £72 billion dividend for the public finances.
A Challenge for the Government
The NEET crisis alone costs the economy and government finances £125 billion a year and rising. Getting more young people into work would not only revitalise their life chances but also drive economic growth and improve public finances. However, building a preventive state is a challenging task, especially with the UK's tight fiscal predicament and the pressure for immediate results.
The Timing Problem
Moving money upstream to invest in prevention is difficult because the savings take time to materialise. Spending on acute needs and welfare cannot be turned off overnight. Early-years services, for example, require long-term commitment, as reforms may take a lifetime to show tangible results. This timing problem has often made the Treasury sceptical, as the costs are immediate, while the savings arrive years later, potentially benefiting a different government.
A Critical Test for Britain
Milburn's review is a critical moment for Britain. The country must decide whether to rebuild a preventive state from the ashes of austerity or continue down a path of short-term fixes. The alternative is a country hamstrung by the costs of failure, where young people feel lost and society's potential remains untapped. It's time for Britain to invest in its future, to believe in its youth, and to create a society that works for everyone.
