How to build young people’s health and participation in work and education
Recommendations for government
Key points
- Poor health is an increasingly important issue for young people not in education, employment or training (NEET). In 2025, 44% of 16–24-year-olds in the NEET category reported a work-limiting health condition, up from 26% a decade earlier.
- Improving young people’s health, and reducing the impact of poor health on employment, could bring substantial benefits. Restoring the health of 16–24-year-olds to 2014 levels could add £7.3bn a year to economic output, with substantially greater fiscal and economic gains accumulating over time.
- Ahead of the final report of the Milburn review of young people and work, this briefing draws on the experiences of young people and insights from policy, delivery and academic experts to set out recommendations for helping young people with health barriers stay in, or return to, work and education.
- Our recommendations focus on prevention: helping young people stay engaged, tackling health barriers early and recognising that needs vary widely, both between individuals and across different points of a young person’s life. Government should:
- work with local partners to develop a caseworker-led offer for young people at greater risk of persistent NEET status as they transition from school
- strengthen school-based mental health support teams and roll out early access mental health support hubs to every local authority in England
- introduce reforms to ensure those aged 25 years and younger are engaged more actively through the welfare system and improve guidance and advice for employers to help them recruit and retain young people with health conditions.
- Bringing existing services together into a more cohesive offer could expand access to the support set out in these recommendations, but delivering it at scale will also require additional upfront investment and a sustained policy commitment. This will be challenging in a tight fiscal environment but – as the interim report from the Milburn review argues – over the long term, earlier support should reduce reliance on more costly clinical and welfare services.
With Toynbee Hall, we held four focus groups in July 2026. 25 young people aged 18–24 years and out of work and education participated from across England, including 11 who reported a disability. Anonymised quotations from these sessions are used throughout.
Action for Children supported the study by organising site visits and interviews with employability services in Scotland and Wales. A range of policy, delivery and academic experts from different organisations also contributed through workshops to inform and evidence the policy recommendations.
UCL’s Equalise: ESRC Centre for Lifecourse Health Equity produced new longitudinal analysis of school-based predictors of NEET status. The work also draws on relevant Health Foundation programmes, including the Commission for Healthier Working Lives and the Young People’s Future Health Inquiry.
Figure 1
How schools recognise and manage early manifestations of poor mental health, neurodevelopmental conditions or wider life challenges can thus be critical. This is particularly important given the rapid increase in the number of young people reporting a mental health or neurodevelopmental condition. Although this partly reflects changing cultural attitudes towards and increasing awareness of mental health and neurodevelopmental conditions (in part due to higher diagnosis rates), evidence suggests there are more young people experiencing distress and symptoms of depression and anxiety.
The government’s main policy approach has been to roll out mental health support teams (MHSTs) that provide early support for mild to moderate mental health problems. MHSTs also help schools develop whole-school approaches to mental health and connect pupils with more specialist services where needed.
Nearly 80% of secondary schools now have access to an MHST, with coverage planned to extend to all schools and colleges by the end of 2029/30. Although there has not yet been a full, high-quality impact evaluation, school leaders are positive. The latest Department for Education survey saw 92% of respondents ‘strongly’ or ‘somewhat’ agree that their MHST had provided beneficial mental health support, and 87% of respondents ‘strongly’ or ‘somewhat’ agreed that their MHST helped improve the school’s or college’s overall approach to mental health and wellbeing.
MHSTs provide a promising architecture for better early intervention around young people’s mental health and participation. However, there are two important gaps government should address. The first is in post-16 and alternative provision education settings. As Figure 2 shows, only 42–44% of learners in post-16, alternative and special school settings are currently covered by MHSTs.
Figure 2
Extending MHST coverage to these settings should therefore be a priority for government, although the model may need to be adapted to reflect their lower contact hours and the different relationships between staff and students, characteristic of further education colleges in particular.1
MHSTs should also develop stronger expertise in supporting neurodevelopmental needs to reflect the fast-growing number of young people with diagnoses or on diagnostic pathways. Evaluations have identified this as a gap in current provision, and increasing capacity to identify and manage such needs early could improve outcomes for young people and reduce reliance on clinical services.
These changes would strengthen MHSTs’ capacity to identify and address needs earlier. But whether young people thrive at school also depends on the wider school and policy environment. The government’s SEND reforms could complement MHSTs by helping schools better support pupils with lower-level needs (without the need for a diagnosis) and expanding specialist provision for those with more intensive needs. Other school policies, including behaviour and accountability frameworks, should reinforce an emphasis on inclusion and rapid access to support.
Bridge school-based and clinical support with community-based services
While schools have an important role to play in preventing, identifying and managing early signs of mental health risk, there is a gap between school-based and clinical support.
MHSTs offer basic therapeutic interventions, but some young people have different personal preferences or support needs that are better managed in a different environment. Specialist NHS children and young people mental health services are designed primarily for those with more complex or persistent mental health problems, and might not be the right type of intervention for those with mild to moderate support needs.
Young people in focus groups identified this gap between school-based and clinical support, noting that seeking clinical help seemed disproportionate for what they needed.
‘The part about [children and young people mental health services] where if you don't qualify for the referral, I kind of related to it… sometimes it's not… maybe as severe, but it's just something that you want to talk about or like just get it off your chest or come for some advice, but you need to meet like a strict boundary of things to even be able to be referred, and it kind of just puts people off.’
Young person in the NEET category (focus group participant)
However, another young person shared that their school relies on clinical labels as prerequisites for providing support, which can leave emerging issues to worsen.
‘Whatever mental health problems you have… they (schools) just don't care about it. And until it gets to a point where it can be under a label, then it's kind of beyond recovery because it is left for so long because it couldn't be identified.’
Young person in the NEET category (focus group participant)
A reliance on diagnoses to unlock support, along with limited preclinical mental health support for young people, may be contributing to the long waits young people continue to face for diagnosis and treatment. In 2024/25, more than 1 million children had an active referral, with 35% still waiting for treatment at the end of the year and more than 60,000 waiting over 2 years. As the focus group participant observed, long waits for help have been linked to young people’s mental health issues worsening and can make the help they eventually do receive less effective.
To bridge the gap between school-based and clinical support, the government should strengthen the community-based offer. Early support hubs provide an existing foundation, with 24 hubs explicitly catering to 11–25-year-olds currently receiving central government funding. Estimates suggest more than 60 comparable services operate across the country with support from the NHS, local authorities and charities.
The role of the hubs is to provide access to specialist preclinical support and advice for young people without a referral or diagnosis. This can include light-touch support with self-management as well as therapies and advice on wider issues such as employment, money and relationships. Hubs could also help triage those with more severe needs towards NHS support. A strength of the community-based model is that it can provide continuity of support across the transition into adulthood, avoiding the cliff edge between children’s and adult NHS mental health services.
Hubs are also well placed to coordinate peer support networks, which were singled out by the young people we spoke with as a key intervention for supporting mental health.
‘It just makes me feel less alone knowing that there's other people going through it as well… I feel like [peer support groups] would also be helpful because something that I struggled with after leaving school is having routine, having that structure. And I find myself to not really do well when I don't have a routine or structure.'
'Like, just being able to sit in a group of people that has gone through the same thing as me, I would find it motivating to… know that I'm not on my own and this is actually quite common.’
Young people in the NEET category (focus group participants)
Government should set a target of expanding early access hubs to every local authority in England by the end of the parliament, with devolved nations replicating the approach. These hubs should provide a route to support for young people awaiting specialist care, those with needs that exceed or are not appropriate for the kind of support MHSTs provide and those who want or need support outside their school or college.
Expanding early access to hubs would require additional investment. Estimates have placed the cost of replicating the current model in every English local authority at £170m–£210m a year. While substantial in a tight fiscal environment, this is relatively modest compared with the estimated £456m annual cost of universal MHST coverage and the £7.3bn in economic output lost annually due to deterioration in the health of 16–24-year-olds over the past decade.2 By providing earlier help outside specialist settings, hubs may also reduce pressure on clinical services, although evidence on the impact of existing government-funded hubs on clinical demand and NHS spending is not yet available. There may also be a role for digital tools in providing young people with advice and guidance on managing their health and directing them to appropriate local services. However, any tools offering medical advice would require evidence of their effectiveness.
SkillsPlus+ supports care-experienced young people aged 14–24 years across Cardiff, Western Bay and North Wales. It combines therapeutic support with practical life skills, drawing on dialectical behaviour therapy and cognitive behavioural therapy.
Practitioners help young people develop emotional regulation, mindfulness and distress tolerance alongside soft skills like communication and problem-solving, while also building practical competencies such as budgeting, cooking, managing a tenancy and independent living. In South Wales, a dedicated transition worker helps the young people to identify, secure and sustain progression into education, training or employment.
The service has incorporated ASDAN accreditation as an alternative progression route for young people who are not yet ready for employment or formal education. ASDAN programmes provide a structured way to recognise and evidence skills development achievement through smaller, meaningful steps towards participation.
In 2025/26, the service supported 120 young people. 96% showed improvement in their mental health and emotional wellbeing, 94% reported improvement in their social functioning, 96% engaged with learning and training that optimises their future employment opportunities and 40% took part in training, volunteering or employment opportunities.
The role of employers
The NEET rate is significantly influenced by employer demand and the wider economic cycle. Subsidised employment schemes, such as those introduced through the Youth Guarantee, can help reduce the financial risk of recruiting young people with limited experience or additional needs. But employers can also do more to make recruitment and workplaces accessible.
Young people described a particular frustration with recruitment processes. Disproportionate multi-stage applications can create unnecessary barriers to entry-level jobs, especially for those with neurodevelopmental conditions, while AI-based assessments and pre-recorded interviews were also cited as practices that can increase alienation and disengagement.
‘Pre-recorded interviews. I think that should be abolished, and I hate them so much. It's like not only as a neurodivergent person and somebody with like high anxiety, but like the least I deserve is to have somebody – like, if I'm recording an interview… I'm talking to a computer screen… are we really at that point?
The few… job interview processes that I have been able to get through, all of them had at least four stages. And this was for entry level jobs. I'm currently in the middle of one that has seven stages. Which I think is just crazy.’
Young person in the NEET category (focus group participant)
Government does not currently prescribe how private sector employers recruit, unless such processes directly or indirectly discriminate against people with a protected characteristic. But government both can and should set expectations through its own recruitment practices and use guidance, procurement and employer engagement to encourage more inclusive approaches.
Part of the challenge is that today’s young people, being more likely to report ill health, may also have different expectations of the support employers should provide. In many cases, meeting these expectations may simply mean employers consistently follow good practice in recruitment and onboarding. But alongside financial support through the Youth Guarantee, employers may benefit from practical advice to help them recruit, onboard and retain young people with health conditions, particularly in the light of recent employment legislation that employers report is creating additional burdens and risks around recruitment.
The Keep Britain Working review’s proposed standards for a healthy working lifecycle provide a useful vehicle for clearer employer responsibilities. More targeted advice and business support may also be justified, particularly in sectors employing large numbers of young people, such as retail and hospitality.
For young people with more significant health or other barriers, a more intensive offer may be needed. This could include caseworker support that continues into the early stages of employment, helping the young person settle into work, liaising with the employer and advising on adjustments or problems as they arise.5
- This was previously highlighted by the Resolution Foundation as part of the Health Foundation’s Young People’s Future Health Inquiry. See https://www.resolutionfoundation.org/publications/weve-only-just-begun/.
- Health Foundation calculations. See method here https://www.health.org.uk/sites/default/files/upload/publications/2026/Health_Foundation_Health%20as%20an%20economic%20asset_2026.pdf
- These figures are indicative estimates based on published data from NatCen’s NEET Risk Index. We define ‘elevated risk’ as a score of 40 or more. Among year 11 pupils studied in 2010–12, 11.2% fell into this group, and around 46% went on to spend at least 12 consecutive months in the NEET category between the ages of 16 and 24 years. We define ‘high risk’ as a score of 60 or more. This applied to around 2% of the cohort, of whom around 71% subsequently spent at least 12 consecutive months in the NEET category. Changes in the underlying characteristics of young people since 2010–12 mean that the proportion in each risk band may be different for the current cohort of year 11 pupils. See Tables 12 and 13 in Addario, G., Wilson, C., Crowley, J., Beardsworth, S. and Moller Vallgarda, L. (2026), NEET Risk Index: Methods Report. London: National Centre for Social Research. Research funded by Youth Futures Foundation.
- Preventing health-related job loss: An evidence-based response to what is needed to provide effective early-intervention caseworker support in the UK. RAND Europe. Funded by the Health Foundation. Forthcoming.
- Preventing health-related job loss: An evidence-based response to what is needed to provide effective early-intervention caseworker support in the UK. RAND Europe. Forthcoming.