Skills Compass: Navigating the NEET Crisis and 1.8M Jobs

Skills England’s new Skills Compass could redefine how we address the NEET crisis and prepare for 1.8 million new jobs by 2035.

Reading time: 5 min

Key Takeaways

  • Skills Compass: A practical tool being trialled to create a common language of skills for employers and learners, including NEETs.
  • 1.8 million jobs: Ten priority sectors are projected to grow by 24% by 2035, requiring urgent upskilling and reskilling.
  • NEET crisis: The Milburn interim review and new SEND support without diagnosis signal a systemic shift in how we address youth disengagement.

Let us be honest. The numbers are stark. One million young people in the UK classified as NEET — not in education, employment, or training. And within a decade, ten priority sectors are expected to generate 1.8 million new roles. Most people get this wrong. They see these as separate problems — a crisis of disengagement here, a labour shortage there. But if you strip away the noise, they are two sides of the same coin. The question is whether we have the tools and the will to connect them.

The Milburn Review: A Fork in the Road

Earlier this week, the Breaking Barriers Collective, in partnership with the Edge Foundation, hosted a day that, by all accounts, was extraordinary. Stories of young people failed by the system moved people to tears. The energy in the room, the mix of experts and real decision-makers — it was the kind of event that makes you rethink what is possible. Gavin O’Meara described it as “immense,” and I understand why. When Alan Milburn says we are at a fork in the road, he is not being dramatic. His interim review, a 217-page document, is as holistic as it is urgent. There is more to come, and I will be watching closely.

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The real question is not whether the review identifies the right problems. It does. The question is whether the system is capable of acting on its recommendations. That is where things get interesting.

Skills England’s First Annual Report: What the Headlines Missed

On the same day the Milburn review dropped, Skills England published its first annual skills report — 56 pages that I have read twice. Much of the media attention naturally gravitated to the NEET statistics, but a few developments flew under the radar. These are the details that matter.

The most promising is the trial of a Skills Compass. This is not another policy white paper. It is a practical tool designed to create a common language of skills for employers and learners — including those who are currently non-learners, like the NEET cohort. Alongside this, Skills England is developing Local Skills Dashboards, exploring Skills Passports, and working with employers on portable skills wallets to aid recruitment into specialist roles.

I have very little patience for initiatives that sound good but deliver nothing. This does not feel like one of those. The direction of travel — toward a more agile, flexible, and data-driven system — is the right one. It is not complicated, but it is demanding. It requires coordination between national policy and local need, between employer demands and learner aspirations.

1.8 Million Jobs by 2035: The Urgency of Now

Let me put this in perspective. Skills England data indicates that the ten priority sectors — eight from the industrial strategy plus health, social care, and construction — will grow by 24% in under a decade, creating around 1.8 million roles. That is a lot. And if you think we have time to prepare, think again.

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The real work begins now. That means layering transferable skills, critical AI skills, and employability skills onto the specialist training these sectors demand. The Milburn review and the Skills Compass both point to the same truth: we need to move from a qualification-based system to a skills-based one. And we need to do it without leaving the NEET population behind, because they are not the problem — they are the solution waiting to be activated.

SEND Support Without Diagnosis: A Game Changer

There was another announcement this week that deserves more attention than it received. The government is rolling out an Experts at Hand service, backed by £1.8 billion in investment, that will provide specialist support to children and young people with SEND — without requiring a formal diagnosis. This single change addresses a structural bottleneck that has excluded far too many from meaningful support. And it directly chips away at another piece of the NEET puzzle.

This is not complicated. When you remove barriers to support, more young people can engage. When they engage, they are less likely to become NEET. The investment matters, but the principle matters more.

What I Am Watching Next Week

Monday: Exclusive video address from Jacqui Smith of the Breaking Barriers Collective on the Milburn findings and the NEET challenge.

Tuesday: Launch of the Bridging the SEND Transition Collective report from Prof Amanda Kirby and Dr. Vikki Smith.

Wednesday: Extended video interview with Phil Smith, Chair of Skills England, covering the annual report, the Skills Compass, common language of skills, portable skills wallets, and more.

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Thursday: The start of the new Learning for a Changing World live stream season with NCFE, Episode 1 titled “The Missing Million” — on NEETs.

If the tone of this week suggests cautious optimism, that is deliberate. There is real momentum here, and I intend to follow it.

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