This report outlines 4 key principles essential for designing a labour market policy that unlocks the potential of young people furthest from the labour market to support them towards good-quality, sustained employment. Young people furthest from the labour market face prolonged periods of being out of work or learning, citing ill health as a reason, and face complex and multiple issues of disadvantage. Without the guiding principles outlined here, addressing economic inactivity in this group will be difficult.

The Government’s Get Britain Working white paper and Pathways to Work green paper present competing visions for supporting young people furthest from the labour market into employment. However, cuts to health and disability benefits outlined in the green paper threaten the intent of the Youth Guarantee outlined in the white paper.

Principles for unlocking potential

• A blended approach: This approach combines a functioning and adequate safety net and public services, with highly tailored active labour market policies to support young people into employment.
• Highly targeted and bespoke support: Policy design should use national and local intelligence alongside insight from young people, employers, local services and voluntary and community-based organisations to identify and engage those who need the most support.
• High unit cost contained total cost: Due to the lack of perceived fiscal headroom, a higher unit cost programme that provides higher quality and more effective support, with a low to medium contained total cost overall, could be more attractive fiscally.
• Flexible success measures: Achieving good-quality and sustained employment for this group of young people will be challenging, and some young people may need ongoing support even if employment is not immediately possible. Therefore, success should focus on multiple outcomes, considering each young person’s starting point and measuring progress towards meaningful engagement and sustained good-quality employment.