Support more young people into work, says FSB

27 Aug 2025

More needs to be done to support young people into work, says the Federation of Small Businesses (FSB).

The call followed news that that the number of 16 to 24-year-olds not in education, employment or training (NEET) across the UK has risen to 948,000. 

This marks a 25,000 increase from the figure of 923,000 recorded between January and March of this year.

FSB research shows that almost 60% of young people are currently interested in owning a business, but only 16% actually have a business or are in the process of setting one up.

The business group is now calling for the government to back measures that open up routes into work, training or entrepreneurship – potentially helping 100,000 young people every year.

Tina McKenzie, Policy Chair at the FSB, said: 'Creating a New Traders Allowance could give a great opportunity for young people to get into work and take control of their future by starting their own business. We want the Department of Work and Pensions to get behind this and make sure the Youth Guarantee is widened to include proper support for anyone keen to give entrepreneurship a go.

'This could be the spark that helps a generation turn energy and ideas into something longer lasting. Young people need more than a grade on a piece of paper - they also need the chance to build a future.'