A £10m initiative to create 1,500 new apprenticeships across the North East by 2029 must be "just the start" of efforts to tackle the region's youth unemployment crisis, according to North East mayor Kim McGuinness.
Mayor McGuinness and council leaders this week approved proposals to launch a pilot scheme aimed at delivering more opportunities for young people at risk of dropping out of education or employment.
Highest NEET rate in England
The North East has the highest proportion in England of 16 to 24-year-olds not in employment, education or training (NEET), at 19.6% as of March 2026 – roughly 59,600 people. Nationally, there is growing concern about the NEET emergency, with former health secretary Alan Milburn leading a review into how to prevent a "lost generation".
The North East mayoral authority cabinet has backed the region becoming a pilot location for a new apprenticeship brokerage programme supported by £10m of Government investment. The programme aims to strengthen links between employers and young people, improve businesses' ability to recruit apprentices, and establish clear routes into local employment – with an initial focus on leisure and tourism, housing, and advanced manufacturing.
1,500 starts and expansion plans
The pilot is expected to deliver 1,500 additional apprenticeship starts for young people aged 16 to 24 by March 2029, of which 375 are predicted to be NEETs. It is set to be expanded further, with the mayor's office anticipating a second tranche of funding from the Department for Work and Pensions to enhance the pilot.
Ms McGuinness told the meeting that the 1,500 opportunities created "has to just be the start". She added: "It [the NEET rate in the North East] is not acceptable and we are not doing enough yet to help get them onto the career ladder. I strongly believe that every child, regardless of their background, every young person deserves opportunity and they should not be met with dead ends. They should be met with the tools that they need to get on."
Employer and council reactions
Sunderland City Council leader Chris Eynon identified Nissan and Northumbrian Water as significant regional employers enthusiastic about taking part in the pilot. The Reform UK councillor added: "There are too many people who are NEET. As Einstein said, if we keep doing the same thing and expecting a different outcome that is insanity. The good opportunity with the apprentice brokerage pilot is to try and break that cycle of going after the same previous approach but not getting the desired outcome."
Colin Ferguson, the Liberal Democrat leader of Newcastle City Council, gave a warm reception to the pledge to bolster support for small businesses that consider taking on an apprentice a financial risk. He stressed the importance of ensuring that as many small businesses as possible "feel like they can take on an apprenticeship, to do it safely, do it productively".
