Alan Milburn, the former Labour health secretary, has launched a review warning that the number of young people not in work, education or training in the UK could rise by 25% to 1.25 million by the early 2030s without urgent government action. The report, due to be published on Thursday, cautions against creating a 'lost generation' and calls for a fundamental overhaul of schools, the health service, the welfare system and the jobs market.
Milburn will argue that the welfare state is 'exacerbating inactivity' and that new work programmes alone will not address deeper-rooted problems. He is expected to say: 'This is not a failure of young people. It is a failure of a system stuck in the past. Whether it is education or health or welfare, that system fails to enable their participation in the labour market.' The review comes amid rising unemployment in Britain, with young people disproportionately affected by the economic downturn following the Iran war.
Official figures due on Thursday are expected to show the number of Neet (not in education, employment or training) young people close to one million, the highest level in over a decade. Milburn will warn that without action, the proportion could rise from one in eight to one in six young people within five years. The report highlights concerns over rising mental ill-health, social media and AI disrupting the jobs market.
However, the government faces criticism from business groups who say Labour policies have worsened the crisis. The Federation of Small Businesses' policy chair, Tina McKenzie, said: 'Ministers cannot ignore the impact soaring employment costs are having on hiring... They are a major factor when it comes to the number of Neets.' The review also notes a sharp decline in entry-level jobs in hospitality, leisure and retail.
Milburn will call for a reset of the system, urging whoever leads Labour into the next general election to make cutting youth unemployment a top priority. He warns that the promise of each generation doing better than the last is being broken, leaving parents and grandparents fearful for the future. The report is seen as a challenge to Prime Minister Keir Starmer, who has faced internal party tensions over welfare reform and a potential leadership challenge from Andy Burnham.
