Youth unemployment in the UK has reached a critical point, with new figures revealing that more than one million young people aged 16 to 24 are currently not in employment, education or training (NEET). A recent review led by former minister Alan Milburn warns that the situation is rapidly becoming a “moral crisis”, with projections suggesting the number could rise to 1.25 million within the next five years if urgent action is not taken.
As policymakers debate solutions to tackle rising youth unemployment, business leaders are increasingly calling for practical reforms that make it easier for employers to invest in young talent. Simon Lancaster, founder of SJL Insurance and owner of Worcester City Football Club, believes the current economic and regulatory environment is making it harder for businesses to take a chance on inexperienced candidates, despite a strong desire to support the next generation entering the workplace.
In this exclusive interview, Simon discusses the challenges facing young jobseekers, the role the Government can play in encouraging youth employment, and why apprenticeships remain one of the most effective routes into successful careers. Having started his own journey through a business administration apprenticeship before founding a successful insurance company at the age of 23, he offers first-hand insight into alternative pathways beyond university and the value of gaining practical workplace experience early in life.
From apprenticeship opportunities and employer-led training academies to advice for young people struggling to secure their first role, Simon shares his perspective on how businesses, educators and the Government can work together to prevent a generation of talented young people from being left behind. He also reflects on the resilience, initiative and work ethic that helped him build a business from scratch, offering valuable lessons for young people navigating an increasingly competitive jobs market.
Interviewer: Good evening to you. The Prime Minister’s vowed to tackle youth unemployment after a report ruled that is becoming a moral crisis. Figures released alongside Alan Milburn’s review show more than a million 16 to 24 year olds are not in employment, education or training. It’s warning that if it’s left unchecked it could rise to 1.25 million within the next five years. Well let’s speak live now on LBC News to Simon Lancaster who’s the founder of SJL Insurance and owner of Worcester City Football Club. It’s great to have you with us here on LBC News this evening Simon. Their warning there couldn’t be more stark. The report’s author there saying that it’s becoming a moral crisis.
Simon: Yeah it’s a pleasure to be with you. Thanks for having me. I’ve read Alan Milburn’s report and I do agree with much of it. I think we are in danger of losing a generation of 17 to 20 plus year olds really and then missing out on the most important phase of their career. Those first few years were certainly the most important years of my career and you know it set me up for the skills and experiences for everything else that followed. And as well as them missing out of course it’s put in additional strain as the report says on an already stretched welfare bill. So definitely need to find some solutions for it.
Interviewer: Before we talk about the solutions from your perspective what do you think is going wrong here? Why are younger people finding it so difficult to enter into the workplace?
Simon: Well firstly I think it’s important to say I don’t think it’s any fault of theirs. I think they’re just as keen as any previous generation. I think it’s just the environment that we’re in really. I think employing people is getting more and more difficult you know with the rises to minimum wage, national insurance, contributions from employees, employers and obviously the employment rights increasing as well. So I think businesses like myself and we insure thousands of businesses across the UK we all like to employ young people and give them the chance to start their career and pay it back, give them the opportunities that we had. But I think the current environment just makes it unattractive to make a gamble on a younger person when you could employ somebody with more experience and for the same money and the same risk ultimately. So I think that’s where the government could perhaps help slightly change or improve the environment for us and make it easier for us to give the youngsters the opportunities that they deserve.
Interviewer: Oh that’s interesting and can you just elaborate a little bit more on that in terms of having to take that gamble on a younger person or an older person. What is it that is currently making it that gamble so difficult and what would you like to see from the government?
Simon: Well I think in the days when I was that age, I’m 47 now and also having employed hundreds of those aged people down the years, you presented with two options really. A younger person with no experience that may be a little bit cheaper, maybe a bit more of a gamble or somebody a bit older with some experience with a little bit more money. But now because of the increases in legislation and minimum wage they’re coming at the same price or the same cost and the same risk really. So you’re probably going to plump with the one with experience and that’s why I think the younger people might be missing out on opportunities. So that’s only really for the government to help change those macro economic factors really where we can you know take a gamble if it is a gamble on the younger people and give them their opportunity.
Interviewer: And we’ve just spoken about the legislation of course and the government’s role in all of this. What about business leaders like yourself and what is it that you are doing or indeed should be doing in order to entice more younger people into the workplace? I know you’ve touched on the fact that you do take on younger people what more should people like yourself be doing? I think
Simon: Just exactly that really just giving the young people their chance even if it is maybe more of a gamble if you like than somebody with a bit more experience. So we’ve had over 30 apprentices come through our company because I was an apprentice myself so utilised the apprentice system. It’s not as easy to access as it used to be but it’s still a very good system so that’s available and I’d encourage employers to access that like we’ve done. And also we’ve had an academy so we’ve taken we’re an insurance broker but we’ve taken people not from within the insurance industry from other from retail from other hospitality other areas and train them up in-house through a fast-tracked academy system to get them into insurance really so just trying to be innovative and think outside the box with things like the academy apprentices and just giving youth the chance where possible really.
Interviewer: So you went through the apprenticeship route then and not the university route?
Simon: I did yes I decided that A-levels in university was not for me so I went and got an apprentice business admin apprentice and insurance brokers and worked for several other insurance brokers before setting up my own age 23 so yeah I’d never be critical of university you know my my oldest son went through university and it provides great opportunities in and itself but for me I followed the apprenticeship route I wanted to earn what I learnt and it worked well for me and we’ve had over 30 come through our company as apprentices and many of them are still there in leadership roles so it can work well for the employer and the employee I think so I definitely encourage businesses to utilise the apprenticeship opportunities and like I say you know their own in-house training things like we did with the academy and things like that just to try and give these this young generation there their chance to get on the on the on the ladder really.
Interviewer: And do you know what Simon I think we can all be very very honest here and say that it’s definitely worked out very well for you, you are the founder of an insurance company as well as also being the owner of Worcester City Football Club so it’s certainly doing wonders for you there and I’m so glad actually that you touched on that apprenticeship area because I think a lot of people often look at university as the only route if you like so it’s great that we actually highlight these other routes to this crucial route of apprenticeships.
Simon: Yeah absolutely I couldn’t agree more like I said you know I think university is great for life skills and education for those that it works for but I think it’s important that young people are taught I don’t know if they are taught in schools now I wasn’t really but I think it’s important they’re taught that there is another route another option and one that involves earning rather than getting into debt and one that involves getting these valuable experiences that we spoke about at the top of the conversation where when they do get to 25, 26 they’ve got six, seven, eight years experience under their belt and they are an attractive proposition to be employed or in my case set up on my own as I did at 23 so yeah it’s important that I think young youngsters are made aware really that there’s there’s another route an alternative route and also like you said employers making sure that they’re aware that the apprenticeship model is something that can work well for them as well.
Interviewer: Simon I can’t let you go without having to pick your brain and make sure that you share some nuggets of information with us because I think we all remember don’t we that moment when you finish either university or your apprenticeships you’re at that age where you’re starting out about to start out into the world you’re applying for so many jobs you’re just not simply getting it and you think is it ever going to happen as you mentioned that you set up your company what 23 I think I just heard you say there and so what advice would you give to somebody because let’s not kid about that era can be so frustrating and so demoralising that you have to find the strength from somewhere for any young person listening or their family members listening what advice can you give to them to say to them listen it’s gonna be okay
Simon: Yeah I think just that really stick with it it will be okay and also I’d say you know I’ve got four boys I always say this to them just be proactive and put yourself out there you know that’s what I did I I worked for a few insurance brokers and then I was made redundant at 23 that’s what happened to me and the jobs that I was being sent and going for interviews just weren’t really what I was looking for and I did have the much spoken about light bulb moments at my mom and dad’s garden when I thought you know what I can just do this myself so just when I did it myself but whether you get a good job that you want or whether you start by yourself I think just put yourself out there I mean when I started I got a business startup grant and that got me a computer and a desk but it was literally day one blank sheet of paper and all I had was myself really and just put myself out there it was paper mail shots back then I’m talking 25 years ago but mail shots phone calls be proactive hit the numbers and then you’ll get you’ll get some responses and then and then it can snowball as long as you obviously do a good job and and help people out along the way but yeah just stick with it be proactive work hard nothing nothing groundbreaking I’m afraid but yeah I’d say the main bits be proactive get yourself out there and work hard at it
Interviewer: Absolutely, Simon can I just say it’s been absolutely lovely speaking to you it really has and I do hope that you know any young person in this situation can actually understand that listen even for people who do own football clubs you know it didn’t start out all rosy there is a lot of persistence that you have to keep going and it will be okay okay it will be alright thank you so much for your time that is Simon Lancaster there who’s founder of the SJL insurance and owner of Worcester City Football Club speaking to us there.
