The Cost of Exclusion
A jobless generation of young people is
costing the UK economy billions in lost productivity and crime,
according to a joint report published by The Prince’s Trust and The
Royal Bank of Scotland Group (RBS).
The Cost of Exclusion warns that youth unemployment is
costing the UK economy a staggering £10 million a day in lost
productivity. Together with the £20 million-a-week the government
pays out in Jobseeker’s Allowance, the young unemployed are costing
the UK billions of pounds each year.
Download the report.
The report, based on research conducted by the Centre for
Economic Performance, London School of Economics, also reveals that
youth crime is costing the UK economy £1 billion every year while
educational underachievement costs £18 billion in lost
earnings.
It recommends that more investment is needed to help young
people in the UK’s deprived communities who are not in employment,
education or training (NEET). It argues that helping young people
gain the key skills to find work represents value for money given
the measurable costs of social exclusion.
Key points:
Every year an estimated 70,000 school-age offenders enter the
youth justice system, costing the UK £1 billion every year.
- Educational underachievement
Educational underachievement costs the nation an astounding £18
billion in foregone earnings.
Almost a fifth of young people in England, Scotland and Wales
are not in education, training or employment.
Comments:
"Only by helping young people develop new skills and get
back into work can we make a real investment in our country’s
future.”
- Martina Milburn, Chief Executive of The Prince's Trust
“A strong economy and low unemployment continue to mask
the true cost of youth exclusion. We could save £3.6 billion a
year"
- David Fenton, RBS Economist
RBS supports The Prince's Trust to help the one million young
people who are not in education, employment or training.