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Calls for tax credit to help employers take on young unemployed as NEET numbers feared to reach one million

Fears are growing figures published later this morning could show more than one million people between the ages of 16 and 24 are not in employment, education or training (NEET).

John Cridland, CBI director-general, said: "With unemployment figures set to show yet another disappointing rise, we need action for jobs now.

"We'll be making the case strongly to the prime minister that job creation, especially for young people, must be a major plank of the autumn statement.

"We are calling for a new Young Britain Tax Credit to encourage employers to take on unemployed 16- to 24-year-olds to help them secure that all-important first step on the jobs ladder.

"Businesses are also ready to play their part, becoming ambassadors to inspire young people about the world of work, offering more apprenticeships, meaningful work experience and fostering better links with schools. There also needs to be further reform of the benefits system to make work really pay."

In advance of the expected announcement from the Office for National Statistics and a Government announcement on apprenticeships, the Association of Employment and Learning Providers (AELP) has urged ministers not to get "blown off course" on from their previously announced plans for apprenticeship growth during this Parliament.

AELP has made clear to the Treasury and BIS apprenticeships are as important for upskilling the adult workforce as they are for training up school leavers. It added 'preparatory' training for the unskilled unemployed should precede entry into an apprenticeship.

The association has pointed out that the apprenticeship programme, relaunched in 1994, was never set up exclusively for the benefit of young people as a form of job creation. The submission also addresses other misunderstandings and misconceptions about the programme.

More than 262,000 young people in the 16 to 24 age group started an apprenticeship in 2010-11 - a 15.9% increase on the previous year - and these apprenticeships came with a contract of employment at a local business. And a record number of apprentices are completing their programmes. The success rate is now approaching 75% which compares favourably with the best in Europe.