Young 'Neets' cost economy £56,000 each

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Young 'Neets' cost economy £56,000 each

11-10-2011

Almost one million 16 to 24 year-olds are not in education, employment or training (Neet) in England. We look at what each Neet costs the economy, based on recent research.

Britain faces a 'crisis' in its communities unless it tackles high levels of youth unemployment, a report warns. Photo: REX

By Louisa Peacock, Jobs editor

6:15AM GMT 04 Nov 2011

Each young person not in employment, education or training bears a cost to the public purse, through benefit payments, lost tax revenue and healthcare and criminal justice costs, says a report by the Work Foundation and the Private Equity Foundation, published today.

The loss of economic productivity from unemployment - or underemployment - is also a concern, the report warns.

Here is a quick guide outlining how much young Neets are estimated to cost the economy:

- Each teenage Neet, aged 16 to 18, is estimated to cost the economy £56,000 over the course of their lifetime

- The current estimated public finance costs of 16 to18 year-old Neets range from £12bn to £32bn.

- The cost of youth crime (including imprisonment of children and young people) is £23m a week - £1.2bn per year, while the cost of educational underachievement is estimated at £22bn per generation.

Source: Work Foundation and Private Equity Foundation report, which cites various research

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