Work and Pensions Secretary Pat McFadden is currently visiting the Netherlands to examine the country’s approach to youth employment, particularly the significantly lower rates of young people classified as NEET—those not in employment, education, or training—among 16- to 24-year-olds. The Netherlands reports approximately two-thirds fewer NEETs in this age group compared to the United Kingdom.

This visit seeks to explore policies and systems that contribute to the Netherlands’ success in engaging young people in productive activities. Experts suggest that the Dutch tax framework plays a key role in supporting youth employment initiatives. The Netherlands imposes a top income tax rate of 49.5 percent starting at £79,000 per year, while the UK’s top rate currently stands at 45 percent, beginning at £125,000 annually. Some analysts argue that adopting a tax structure more similar to the Dutch system could reduce income inequality and generate additional government revenue.

Proponents of this approach contend that increased funds from higher top-end taxation could be channeled into programs designed to assist young people entering the workforce, potentially benefiting what has been described as a “lost generation” amid ongoing economic challenges. However, discussions continue about the potential economic and political ramifications of changing tax rates and how these might affect broader fiscal policy and labour market dynamics.

McFadden’s visit underscores the UK government’s interest in learning from international examples to address youth unemployment and improve pathways to education and training. The outcomes of this trip may influence future policy considerations aimed at narrowing the gap in NEET rates and enhancing support for young people across the country.