Councils should be allowed to fund youth employment or training projects by drawing on projected future benefit savings, the LGA has reported. The recommendation forms part of a package of measures Smith Square's leaders believe should be implemented to tackle rising numbers of youngsters aged 16 to 18 not in education, employment or training (Neet). A report published at the LGA's conference in Harrogate on 30 June predicts Neet numbers will ‘break the million mark by the end of the summer', and calls for ‘urgent action' to tackle a problem exacerbated by the recession. A senior Whitehall source told The MJ officials ‘would consider' allowing councils to bring forward projected benefit savings to pay for local support programmes, but warned it was ‘merely one possible policy option'. Around 935,000 youngsters are currently Neet, compared with 743,000 in 2005, despite councils identifying youth worklessness as their top target under the local area agreement scheme. The first Comprehensive Area Assessments, due to be published by the Audit Commission this winter, are likely to highlight poor progress against the LAA target since the downturn began. But the LGA's report, Hidden talents: Re-engaging young people, also claims current national and local policies are ‘disjointed' and don't ‘focus enough on the needs of the individual'. Margaret Eaton, LGA chairman, said: ‘A mishmash of government departments, national agencies, voluntary organisations and local authorities all working to different targets and agendas muddy the water and prevent a coherent approach. ‘Councils should be freed up to run job and training programmes funded on the basis of future savings from benefits. ‘In the longer term, we need a much simpler system which intervenes much earlier to spot children at risk of dropping out of the system.' Work and Pensions secretary, Yvette Cooper, said: ‘We are working with employers, councils and voluntary groups to create more than 100,000 youth jobs, increase apprenticeships and provide internships for graduates.'