Growing numbers of young people are struggling to secure their first job, raising concerns about a “lost generation” and the long-term impact on the UK economy. According to figures highlighted in a recent review by former cabinet minister Alan Milburn, more than one million 16 to 24-year-olds are currently not in employment, education or training (NEET), with warnings that the situation could worsen significantly without intervention.
The findings have reignited debate about the barriers facing young people entering the workforce, from rising employment costs and skills gaps to a lack of accessible opportunities for school leavers and graduates alike. Business leaders are increasingly warning that unless action is taken, the UK risks not only higher welfare costs but also a shortage of future entrepreneurs, skilled workers and business leaders.
Among those calling for change is Simon Lancaster, founder of SJL Insurance, owner of Worcester City Football Club and creator of the SJL Foundation. Having begun his own career through an apprenticeship before launching his business at the age of 23, Simon believes young people remain just as ambitious and hardworking as previous generations, but are facing a far more challenging employment landscape.
In this interview with talk, Simon discusses why apprenticeships continue to offer a valuable alternative to university, the pressures businesses face when recruiting inexperienced candidates, and what more can be done to help young people take that crucial first step onto the career ladder. He also shares how initiatives such as employer-led training academies can help bridge skills gaps, create opportunities and ensure the next generation is equipped to succeed in an increasingly competitive jobs market.
As concerns grow over youth unemployment in the UK, Simon argues that businesses, government and educators must work together to ensure no generation is left behind.
Interviewer: …anyway, we’re talking about the lost generation and the fact that Alan Milburn, the former cabinet minister, has done this big report about NEETs. Now Simon Lancaster is with me now. He’s the owner of Worcester City Football Club. He’s the founder of SJL Insurance and creator of the SJL Foundation. His own story, which we’re going to hear in a second, is an example of entrepreneurship, social mobility and grassroots sports impact. But Simon, I wonder if I could just ask you, first of all, thanks for joining us on the programme. It’s really good to hear from you with all the range of experience you have. There’s a lot of information in the public domain now about young people, about the fact that so many of them are not in employment, in education or training. Why do you think they’re finding it harder to enter work from your perspective?
Simon: Well, yeah, good evening. Thanks for having me on. I think there’s a multitude of reasons, really. And it’s good to see this in the public debate today. I did read most of Alan Milburn’s report. I think it was a pretty good report. I agreed with much of it. And it’s just reinforced everything that we in the business community have known for a few years, really. And it is very difficult for those school leavers through to mid-20s to get onto the first rung of the ladder. And that first rung of the ladder, I don’t know about you, but it was so important to me in terms of learning my skills.
Interviewer: Oh, totally. I was very lucky with the first rung of the ladder I got on. And there’s so many young people who may not quite know what they want to do, but just having a job was so much more important than having no job, isn’t it?
Simon: Absolutely. Yeah. I mean, I think I wouldn’t criticise A-levels, university. My eldest son’s gone down that route, but it wasn’t for me. So I left school and got an apprenticeship in insurance brokers and worked my way through numerous insurance brokers before starting out on my own at 23. And those formative years where you learn your skills, learn your trade are vital. And I feel like there is a lost generation, to coin the phrase, that…
Interviewer: Why are they lost? What are the barriers to a 16, 17-year-old doing what you did?
Simon: I think I wouldn’t blame them. I think they’re just as keen, as eager as I was. I’m 47 now, but I think they’re just as keen and eager. I think businesses now, we’ve already tried to recruit young people. I think most businesses like to do that because A) we like to give back, and B) they do make good employees. But it is just becoming more challenging. And, you know, the rises to minimum wage, the rises to national insurance, the increased employment rights, it just makes it more of a gamble to take on a young person, when for the same money and risk, you can recruit somebody with a few more years’ experience. So I think it’s just challenging for business to recruit young people. And I’d like to see the government do a bit more to help. And they are doing a bit, to be fair, but I’d like to see them do a bit more to try and help businesses make it more appealing to give these youngsters the chance that they need and deserve.
Interviewer: What do you think the impact of rising youth and activity will be for the economy more generally?
Simon: Well, it’ll be massive, because it will be obviously a drain on the welfare state, as we already know, that’s already struggling, should we say, stretched. But also, you know, it’s the future skills, isn’t it? You know, the future business owners, the future entrepreneurs, the future employees, they’re not going to have those entry level skills that they’ve learned and developed over years. So it’ll be a massive, massive negative impact on the economy for years to come, I would say.
Interviewer: Simon, I wonder when you are trying to give people, young people opportunities, what’s kind of going through your head versus what you want to do versus what you can do? You’re in a, you know, your hard work has, I’m not going to say you’re lucky at all, your hard work has put you in the great position you’re in today. There may be other people who simply do not want to give those opportunities. You talk about the risk element of it as well. And I wonder, will a report like this actually maybe put people off employing young people to some degree, perhaps?
Simon: It could do. I mean, there’s lots putting us off already, but I’d like to think that businesses will just take the gamble. You know, we try to, wherever possible, I was an apprentice, like I said earlier, we try to recruit apprentices wherever we can. And that is a good, it’s good for the employee, but it’s good for the employer as well. So, I would encourage employers to look at the apprentice model and also think outside the box. We set up our own academy whereby we take people out of non-insurance backgrounds, retail, hospitality, and we put them through an intense training course to train them up the skills in insurance to bring them up to speed. So, we have our own academy that we try and bring eight to ten youngsters through at a time to fast track them in. So, just try to think out the box and give the youth the chance, really, is what I would hope businesses can do.
Interviewer: Well, you’re doing good stuff and thank you for speaking to us. That’s Simon Lancaster there. He’s a businessman, football club owner. Really appreciate you joining us on the programme this evening.
