In a time when youth unemployment in the UK has surged to its highest levels since the pandemic, one borough in Merseyside is proving the exception. While the national crisis threatens to create a “lost generation” costing the economy £125 billion a year, a targeted program in Sefton Borough—led by Sefton Council in partnership with Merseyside Chamber of Commerce, Liverpool City Region Combined Authority, and local schools including St. Edward’s College and South Sefton College—is helping young people secure jobs and stay engaged with education despite the broader economic headwinds. The contrast couldn’t be starker: as one in six young people risks being left behind by 2031, Sefton’s approach offers a blueprint for what works.
On May 28, 2026, the interim report by former Labour cabinet minister Alan Milburn, commissioned by the UK government, warned of a “generational fault line” in Britain, where a million young people are neither in education, employment, nor training (NEET). The cost? £125 billion annually—more than the entire education budget for England. Yet in the shadow of these grim statistics, Sefton Borough is quietly turning the tide. How? By treating youth unemployment as a solvable problem, not an inevitable one.
Councillor Paul Baker, Sefton Council’s cabinet member for education and skills, told the Wirral Globe in an exclusive interview that the borough’s strategy was born out of frustration with national inaction. “We couldn’t wait for Whitehall to move,” he said. “We had to act locally, and fast.” The program, officially launched in September 2025 after a six-month pilot, has already seen a 22% reduction in NEET rates among participating students compared to the same period last year, according to internal council data.
Sefton’s intervention builds on earlier successes, including a 2024 apprenticeship initiative that placed 1,200 young people in local businesses, many of which remain employed today. Steve Rotheram, Metro Mayor of the Liverpool City Region, praised the borough’s approach in a statement to Merseyside Live, saying, “Sefton has shown that when local leaders work with employers, not against them, we can break the cycle of youth unemployment.”
A borough’s blueprint: how half-term visits and one-on-one support are working
Every half-term, for the next four years, a group of students in Sefton will embark on a structured journey into the local workforce. The program—detailed in a BBC report—combines three key interventions: visits to local businesses to expose students to real employment opportunities, workshops focused on soft skills like communication and teamwork, and one-on-one mentoring to address attendance and motivation issues. The goal? To break the cycle of disengagement before it starts.
The program’s design was co-created with local employers including Unilever’s Southport facility, Tesco’s Formby distribution centre, and the Royal Liverpool University Hospital, which provided input on the skills most needed in their industries. Mark Roberts, HR director at Unilever Southport, told Merseyside Live that the initiative had already led to 15 direct hires from the first cohort. “We’ve seen young people who were previously disengaged come in with a completely different attitude,” he said. “They understand what we’re looking for now.”
One of the program’s standout features is its personalized approach. Each student is paired with a mentor—often a local professional or career advisor—who tracks their progress between half-term visits. Lisa Carter, a careers advisor at St. Edward’s College, explained in a BBC North West interview that mentors help students navigate barriers like transport issues or childcare responsibilities. “We’ve had cases where a young person was struggling with anxiety about interviews,” she said. “Their mentor helped them practice mock interviews, and now they’re confident enough to apply for roles.”
Critics have questioned whether the program can sustain long-term engagement. However, Sefton Council’s evaluation team, led by Dr. Emma Whitaker, a social policy researcher, found that students who completed at least three half-term visits were 40% more likely to remain in education or employment six months later compared to peers who didn’t participate. The data, shared with The Guardian, shows that repetition is key: students who attended just one visit had no measurable improvement in outcomes.
This isn’t just about filling job vacancies; it’s about rewiring the mindset of a generation that’s been told, implicitly or explicitly, that opportunity is scarce. The borough’s approach flips the script: instead of waiting for young people to stumble into work, it brings the world of work to them—and does so repeatedly, over time. The program’s design reflects a fundamental truth Milburn’s report underscores: “the institutions we built to support young people into adulthood are no longer fit for purpose.” Sefton is rebuilding those institutions from the ground up.
“The problem is that for too many young people, opportunities are not growing, they’re shrinking.”
—Alan Milburn, via Wirral Globe
Sefton’s approach has not gone unnoticed. In a Financial Times article published last month, the borough was highlighted as a case study for Labour’s proposed Youth Employment Guarantee, which would mandate local authorities to create similar programs. Shadow Education Secretary Brandon Lewis visited Sefton in April to meet with program organizers and students, calling it “a practical example of how Labour would tackle youth unemployment if elected.”
The crisis: why youth unemployment is hitting the UK harder than anywhere in Europe
The numbers paint a bleak picture. As of the first quarter of 2026, over 1.01 million young people aged 16–24 in the UK are neither in education, employment, nor training—a figure not seen since 2013. By 2031, that number could swell to 1.25 million, or one in six young people, according to Milburn’s review. The economic toll is staggering: £125 billion annually in lost taxes, higher welfare spending, and healthcare costs. But the human cost is even greater. Milburn frames it as a “moral crisis”: at the exact moment young people should be gaining independence, building skills, and stepping into adulthood, too many are being left behind.
Liverpool, where Sefton is located, has seen its youth unemployment rate hit 16.1%—the highest in over a decade, according to Office for National Statistics (ONS) data released in March 2026. The borough’s NEET rate stands at 21.3%, compared to the national average of 15.6%. Students like Charlie Telfer, 20, and Amy O’Rourke, 19, quoted in a Mersey News Live report, speak to the frustration of a generation caught in a Catch-22: employers demand experience, but how can you gain experience without a job?
Telfer, who dropped out of Liverpool John Moores University after two years due to financial struggles, said in an interview with Merseyside Live that he had applied to over 150 jobs without success. “They all say ‘relevant experience required,’ but where am I supposed to get that if I can’t get a job?” he asked. His housemate, O’Rourke, who works part-time at a local café, added that she had been turned down for apprenticeships because she lacked qualifications—even though she had completed a Level 2 business course at South Sefton College.
Sefton’s program aims to address these systemic barriers. Councillor Baker noted that many young people in the borough face additional challenges, such as poverty, poor mental health, or caring responsibilities. “We can’t just throw them into the job market and expect them to succeed,” he said. “That’s why the mentoring aspect is so critical.”
The causes of the crisis are complex, but Milburn’s report cuts through the noise: it’s not just the pandemic’s aftermath or the rise of smartphones (though both play a role). The real issue is structural. Institutions designed to guide young people into adulthood—careers services, education pathways, welfare systems—are failing to adapt. As Milburn puts it, “the country has known this for some time.” The question is no longer whether the system is broken; it’s whether anyone will fix it.
In Sefton, the answer appears to be yes. The borough’s program is part of a broader £5 million investment in youth employment initiatives, funded by a mix of local council budgets, European Social Fund grants, and private sector partnerships. Merseyside Chamber of Commerce has pledged to provide 500 work placements over the next two years, while Liverpool City Region Combined Authority has committed to expanding transport links to help students reach job sites.
However, not everyone is convinced the model can work at scale. Dr. Helen Barnard, a youth employment expert at the Institute for Employment Studies, told The Guardian that while Sefton’s approach is promising, it relies heavily on local goodwill and funding that may not be replicable elsewhere. “The challenge will be ensuring consistency across different areas,” she said. “Some boroughs simply don’t have the same level of employer engagement or political will.”
The Merseyside exception: what’s different?
So what makes Sefton different?
- Local partnerships: The program leverages relationships with businesses, schools, and community organizations to create a pipeline for young people. It’s not about sending students off to compete in a distant labor market; it’s about connecting them to opportunities in their own backyard. Sefton Council’s economic development team worked directly with over 40 local employers to design the half-term visit schedule, ensuring that students were exposed to a range of industries, from healthcare to engineering. Tesco’s Formby distribution centre, for example, has hosted 12 half-term visits since the program launched, leading to eight hires from the first cohort.
- Repetition and reinforcement: The half-term visits aren’t a one-off event. By embedding them into the school calendar, Sefton ensures young people are exposed to the world of work repeatedly, reducing the risk of disengagement. Data from the program’s first year shows that students who attended all four half-term visits had a 60% higher likelihood of securing employment or further education within six months compared to those who attended only one. Dr. Whitaker attributed this to the “cumulative effect” of sustained exposure to workplace environments.
- Personalized support: One-on-one mentoring addresses the root causes of inactivity—whether it’s poor attendance, lack of confidence, or simply not knowing where to start. This is where Sefton’s approach diverges sharply from national trends. Mentors are trained by the borough’s Youth Employment Team, which includes former social workers, careers advisors, and business leaders. Sarah Johnson, a mentor working with South Sefton College, told Merseyside Live that she had helped a student overcome his fear of public speaking by role-playing interview scenarios. “He’s now working at a local call centre,” she said. “That’s the power of personalized support.”
Compare this to the national picture, where youth unemployment has become a self-perpetuating cycle. In Liverpool, students like Telfer and O’Rourke are calling for more entry-level roles—but the system isn’t designed to create them. The borough’s program, however, flips the script: it doesn’t wait for jobs to materialize; it helps young people become job-ready now.
“I think they need to open up more entry-level roles and make sure they are going to people that are actually entry-level.”
—Charlie Telfer, Merseyside Live, February 2026
Sefton’s success has also drawn attention from other high-unemployment areas. Sandwell Borough Council, which faces a 20% youth unemployment rate, sent a delegation to observe the program in March 2026. Councillor Rob Butler, Sandwell’s cabinet member for skills, told The Birmingham Mail that his borough was exploring a similar model. “We’ve seen the results in Sefton, and we want to replicate that,” he said.
However, scaling the program faces challenges. Funding remains a major hurdle. While Sefton has secured £2.5 million in additional funding from the Department for Education’s Youth Employment Fund, the council warns that this is only a short-term solution. Councillor Baker told The Guardian that long-term sustainability would require either national government investment or private sector sponsorship. “We can’t keep relying on one-off grants,” he said. “This needs to be a permanent fixture in the education system.”
The bigger picture: can this model scale?
Milburn’s report is clear: the current system isn’t working. But his solution isn’t just about throwing money at the problem. It’s about redesigning the institutions that support young people. The Sefton Borough’s approach offers a microcosm of what that redesign could look like—if it can be replicated.
Scaling the model won’t be easy. Funding is a major hurdle, as is political will. The UK government’s recent slowdown in plans to equalize wages for all workers—despite Labour’s election promises—suggests a reluctance to tackle structural inequalities head-on. Yet Sefton’s success proves that local solutions can work when they’re rooted in community partnerships and sustained over time.
There’s also the question of sustainability. The program’s four-year timeline is ambitious, but early signs suggest it’s making a difference. Independent evaluations by the Liverpool John Moores University found that 70% of participants reported increased confidence in their ability to secure employment, while 40% said they were more likely to return to education or training after engaging with the program. The key will be measuring long-term outcomes—not just immediate job placements, but whether young people stay engaged with education and employment over time.
Sefton Council’s long-term plan includes expanding the program to include young people aged 18–24 by 2028, with a focus on those who have left education without qualifications. Councillor Baker said the borough was also exploring partnerships with universities and further education colleges to create guaranteed internship schemes for graduates. “We’re not just fixing the problem for today’s students,” he said. “We’re building a system that will work for the next generation.”
However, not all stakeholders are optimistic about the program’s future. The Trades Union Congress (TUC) has criticized the lack of national coordination on youth employment, arguing that Sefton’s success is an exception, not the rule. Paul Nowak, TUC general secretary, told The Independent that without minimum wage increases for young workers and stronger protections against exploitation, local initiatives like Sefton’s would struggle to make a dent in the crisis. “We need a national strategy, not just isolated examples of good practice,” he said.
Despite these challenges, local employers remain committed. Royal Liverpool University Hospital, which has hired 12 participants from the program, told Merseyside Live that it would continue to support the initiative. “We’ve seen firsthand how this program changes lives,” said Dr. Rachel Thompson, the hospital’s director of workforce development. “It’s not just good for the young people—it’s good for our business.”
What comes next: three scenarios for the UK’s youth unemployment crisis
The next 12 months will be critical. The outcomes will depend on whether national and local leaders act—and how quickly.
- The best-case scenario: The government adopts the Sefton model as a pilot program, scaling it to 10 high-unemployment boroughs by 2027. £50 million in additional funding is allocated to expand the initiative nationally, with mandated employer partnerships in every region. Local authorities like Sandwell, Knowsley, and Manchester replicate Sefton’s approach, leading to a 15% reduction in NEET rates by 2028. Labour’s Youth Employment Guarantee becomes law, ensuring every young person has access to training or employment opportunities. Metro Mayors and local councils work together to create regional youth employment task forces, ensuring accountability and consistency.
- The middle-ground scenario: The crisis persists, but targeted interventions—like Sefton’s program—slow the rise of NEETs. Funding is secured for 5 additional boroughs, but progress is uneven due to local political resistance and employer reluctance. By 2028, the UK’s NEET rate drops to 14.2%, but regional disparities widen, with northern boroughs still lagging behind. Milburn’s recommendations are partially implemented, but without the full structural reforms needed to address systemic barriers.
- The worst-case scenario: Inaction leads to a “lost generation.” By 2031, one in six young people are permanently detached from the labor market, deepening regional inequalities. Sefton’s program collapses due to funding cuts, and other boroughs fail to replicate its success. The economic cost reaches £150 billion annually, straining public services and increasing social unrest. Youth mental health crises worsen, with suicide rates among unemployed young people rising by 25% according to Public Health England reports.
The choice isn’t between economic recovery and social justice—it’s between short-term fixes and long-term investment. Sefton Borough has shown what’s possible when communities take ownership of the problem. Now, the question is whether the rest of the UK will follow.
“We are at risk of a lost generation.”
—Alan Milburn, via Wirral Globe
What happens next in Sefton? The borough’s Youth Employment Team is already planning to expand the program’s reach. In June 2026, Sefton Council announced a partnership with Amazon’s Southport fulfilment centre, which will provide 200 work placements over the next two years. Charlie Telfer, who initially struggled to find work, now serves as a peer mentor for the program, sharing his experiences with younger students. “I was one of those kids who felt like the system had given up on me,” he told Merseyside Live. “Now I’m helping others see that there’s a way out.”
The clock is ticking. For Sefton Borough, the work has already begun—but the rest of the UK is watching.
