North East mayor Kim McGuinness will demand that Andy Burnham hands her major powers and funding to solve the unemployment crisis plaguing a generation of young people, if he becomes Prime Minister. The region has the highest rate in England of 16 to 24-year-olds who are not in employment, education or training (NEET) – 21%, totalling more than 64,000 young people, according to latest Government figures for 2025.
Landmark Report Warns of 'Lost Generation'
A landmark report from former health secretary Alan Milburn warned last month that the UK was at risk of a “lost generation” who are victims of a “perfect storm” of issues – including a shortage of entry-level jobs and apprenticeships, the long-term impacts of the Covid pandemic, loneliness and mental health problems exacerbated by social media, and a lack of adequate careers support in schools. Mayor Kim McGuinness has now unveiled a vision to help combat the crisis in the North East, which she plans to put on the desk of the next Prime Minister – a role which Mr Burnham looks set to take, following Sir Keir Starmer’s resignation.
Mayor's Proposal for Radical Change
She told employers this week that the next occupant of Number 10 must “roll up his sleeves and force change through a reluctant civil service” in order to bring about the radical shift needed to put inactive young people into work or training. Her proposal would see the North East mayoral authority given greater funding and responsibility over the whole 16 to 24 system managing the transition from school to work, including to design and deliver employment support and skills programmes.
She also wants the region to get early release of cash for retrofitting under the Government’s £15 billion Warm Homes Plan, in order to provide a clear pathway of work for young people who can be trained to go into the construction and housing trade. It is hoped that such a model could support up to 3,500 jobs by 2030, reduce energy bills for struggling families living in households with poor energy efficiency, and cut harmful emissions.
Mayor's Statement at Shine Conference
Speaking at the Shine conference in Sunderland on Wednesday, celebrating the mayor’s employer accreditation programme, Ms McGuinness said: “Employers often tell me they can’t find the workers they need, yet we have thousands of young people unable to find a route into work. In the North East, that’s a problem we want to solve together. Nationally, there is a huge growth challenge facing the new PM, a growth problem which covers low productivity, economic inactivity and the future of our young people.
“But these are not three problems, they are really one – access to opportunity - and the North East has a strong solution ready to go. Right now too many of those young people don’t feel they have a future and can’t even see the path to a career. We need radical change, and the powers to deliver it.
“When it comes to that horrible acronym NEETS – those not in education, employment or training – the North East has the worst record of the English regions. Around 20% of our young people are without purpose. If we’re going to change that, if we’re going to give hope and a career, we need to be able to take much more direct action. Because, clearly, waiting for Government to act isn’t working.”
Existing Powers and Need for Overhaul
The North East mayor’s office already has some responsibilities over services for young people aged 19 and over who are NEET, as well as a £50 million Connect to Work programme aimed at getting thousands of people with disabilities and health conditions get into jobs by 2030. But regional leaders fear those powers are too narrow to tackle the systemic problems at the heart of the NEET crisis and that a serious overhaul is needed to join together housing, retrofit, construction, skills, careers, and employment support and create a clear pipeline of new opportunities.
While metro mayors now have the ability to ask for new powers directly from the Government under a Right to Request process, Ms McGuinness wants to mirror the landmark devolution of health and social care to Mr Burnham's former mayoral authority in Greater Manchester with a 10-year deal from the Government to boost employment. Ms McGuinness said it was “time to take a risk” in order to “turn around the lives of struggling young people”.
She added: “The North East can deliver better results. And we can deliver for less. Our NEET pitch is essentially this: let us take on the risk, and if we succeed let us pocket the money you save in benefits and reinvest it in the North East. Give the North East 10 years, give us more responsibility, give us the risk, judge us on the results.”
