Private Equity Foundation (PEF) chief executive Shaks Ghosh has welcomed the government’s latest initiative to tackle youth unemployment but feels intervention should come at an earlier  age.

Deputy Prime Minister Nick Clegg is inviting charities and businesses with expertise in supporting young people to bid for contracts to help 16-17 year olds not in educucation, employment or training (NEET).

Organisations will receive an initial payment for taking young people on, followed by subsequent payments when they show progress, for example, staying on training programmes, undertaking apprenticeships or holding down jobs. The payments will be worth up to £2,200 per young person helped.

Ghosh says: "Last year, the average number of young people aged 16 to 24 not in education, employment or training (NEET) averaged more than one million for the first time so any initiative is to be welcomed.”

"For many, 16 is already too late. We are also looking further up stream. For example, a quarter of 13 year olds are already disengaged from school.”

PEF’s core mission is to reduce the number of young people not in education, employment or training so they can reach their full potential. It is funded by corporate donors and family foundations, which provide cash and pro bono support. Ghosh adds: “Philanthropy has a vital role to play to innovate, fill in the gaps and take a longer term, preventative view.” She says the foundation is looking at the detail of the government’s proposals.

Children and young people’s minister Tim Loughton said: “We are looking forward to receiving some innovative ideas that really work from experienced organisations in all sectors.”

Ghosh points to an intiative PEF has funded called ThinkForward, a school-based programme, providing 'super coaches' to struggling students from the ages of 14-19. A trial in the London borough of Tower Hamlets significantly reduced its NEET problem.

She says: "It's an example of how philanthropy can leverage its impact through working with government. ThinkForward has been named preferred bidder for a social investment bond commissioned by the Department of Work and Pension's Innovation Fund which will enable expansion into ten new schools. In addition, we are fortunate to have had backing from Big Society Capital as well as pro bono expertise and funding from the Private Equity Foundation's members and supporters."