On Tuesday, Tony Blair delivered a withering rebuke to Sir Keir Starmer and his Cabinet, criticising their growth-crushing agenda and refusal to cut the spiralling welfare bill. He accused them of retreating into a failed Left-wing 'comfort zone' of high taxes, regulation, and gesture politics, lacking a coherent plan for the country.
Alan Milburn's warning on youth unemployment
Today, another New Labour figure, Alan Milburn, told his party some hard truths about its failure to address the massive surge in youth unemployment. Without urgent action, he warned, the party risks presiding over a 'lost generation' for whom worklessness is not a temporary blip but a way of life.
More than 950,000 young people aged 16 to 24—roughly one in eight—are currently not in education, employment, or training (NEETs). This represents an increase of 200,000 since 2021 and costs the country approximately £21 billion a year in lost GDP. Worse still, over half are not even required to seek work, often citing mental health issues. With AI replacing many entry-level positions and mass migration intensifying competition, the total number of NEETs could reach 1.25 million by 2031.
Mr Milburn's call for action
Alan Milburn, a former health secretary and chairman of the Social Mobility Commission, described the situation as 'shameful', attributing it to failures in schools, the health service, and skills training. He acknowledged the growth in mental health problems but argued that should not excuse young people from seeking employment. 'Work gives purpose. Work gives meaning,' he said. 'Labour is the party of work.'
That may once have been true, but no longer. Today, Labour is the party of Benefits Street and public sector unions. Even the mildest attempt to cut welfare spending is vetoed by backbenchers who equate reducing benefits with being cruel to the poor. They are wrong. The real cruelty lies in allowing the young to see life on benefits as a viable option. Worklessness dulls the soul and suffocates ambition. Furthermore, the welfare system is becoming unaffordable as those who work struggle to pay for those who don't.
The role of education and false promises
The collapse in work ethic is not entirely the fault of the young. Many were sold the idea that a university degree would guarantee a well-paid job. While that has worked for some, too many have found it a false prospectus, left with crippling student debts and little hope of attaining their dream career. No wonder they feel deceived.
As Blair and Milburn point out, the first step for Labour is to make it easier for firms to hire new staff. This means scrapping the pernicious rise in employers' National Insurance payments and Angela Rayner's misguided workers' rights legislation. Work and Pensions Secretary Pat McFadden announced a huge expansion in youth work experience places, but that is useless if other misguided policies mean most will have no jobs to take up.
Welfare overhaul needed
Secondly, the welfare system must be overhauled to make work virtuous again and state-funded indolence a last resort. Labour must abandon its anti-business prejudices and wake up to this unfolding tragedy before it's too late. The hopes of a fretful and disillusioned generation depend on it.
