Being NEET is no fun at all

954,000 young people are not in education, employment or training

Today’s headline grabbing bad news number is 0.3 per cent. That is the latest revision to the GDP figures for the first quarter of this year and it confirms that the UK economy is not just suffering a double dip recession but that it is deeper than we previously thought [as our economics editor David Blanchflower writes].

But also announced today is that during the same period, the number of young people aged 16-24 years old that are not in education, employment or training (NEET) rose by 29,000 to a new record of 954,000. This lost generation has been growing almost non-stop for more than a decade but the latest rise is clearly a result of the weakness of the British economy.

The worse rises have been in Yorkshire and Humberside, the North West and the East Midlands, which have all hit new record highs. One in five young people in Yorkshire & Humberside are now NEET, up 19 per cent, with a similar rise in London.

The number of male NEETs is also at a new record high and this underlines the impact of the economic climate. Female NEETs are far more likely to have had a teenage pregnancy or have another caring responsibility, for a disabled or elderly relative, that either causes their NEET status or prolongs it.

Being NEET is no fun at all. Research from the Prince’s Trust show that young people who are NEETs are almost twice as likely as other young people to lack a sense of belonging in life. More than a third of NEETs (37 per cent) lack a sense of identity, and this figure rises to nearly half (47 per cent) for those out of work  year or longer. More than a third of unemployed young people (34 per cent) feel isolated all or most of the time, increasing to 45 per cent for those who have been out of work for a year or longer. Almost half of young people not in work (48 per cent) claim that unemployment has caused problems including self-harm, insomnia, self-loathing and panic attacks. Young people are twice as likely to self-harm or suffer panic attacks when they have been unemployed for a year.

So what is the Government doing about it? The new "Youth Contact" is a plan for 160,000 job subsidies and an extra 20,000 apprenticeships but it has yet to have an impact. On its own, it is clearly not enough.

Resources are vital to tackling NEETs, as Barry Sherman’s Education Select Committee showed in their excellent report at the end of the last Parliamentary session. A recent report from children’s charity Barnardos on the replacement to the EMA highlighted its inadequacy. Today’s figures do likewise.

IPPR research shows that apprenticeships – and vocational education more generally – play a key role in supporting young people’s transitions into work in many northern European countries where rates of youth unemployment in these countries are much lower than in Britain.

They say "you’re only young once" and it’s true. I now realise how lucky I was to be a teenager in the late nineties. Those of you in your teenage years in 2012 have my profound sympathy because it is not you who have failed, but Britain that has failed you.

A very young NEET (maybe). Photograph: Getty Images

Richard Darlington is Head of News at IPPR. Follow him on Twitter @RDarlo.

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.