Alan Milburn, the former Labour cabinet minister turned social mobility adviser, has delivered the first part of his government-commissioned report on why increasing numbers of 16- to 24-year-olds in the UK are not in education, employment or training (Neet). The 217-page document covers the extent and causes of the issue, offering a damning picture of what Milburn calls a 'record of failure' that is letting down young people. Here are the main points.
1. A Significant and Growing Problem
About 1 million young people across the UK are Neet, roughly one in eight, and the situation is worsening both absolutely and relatively. A decade ago, the UK's Neet rate was near the EU average; by 2025, only Romania's rate was worse. The problem is increasingly entrenched: six in 10 young people who are Neet have never had a job, compared with four in 10 in 2005. Milburn warns of a 'lost generation' with a cumulative cost estimated at £125bn.
2. Deeply Connected to Inequality
The report stresses that these issues are structural, not due to young people being workshy. Disparities in wealth, background, geography, and ethnicity play a key role. For instance, in Barnet, north London, 1% of 16- and 17-year-olds are Neet, while in Dudley, West Midlands, that figure is 21.5%. Eight of the 10 English local authorities with the highest Neet rates are in the north or Midlands. Risk factors include low GCSE attainment, additional needs, persistent school absence, being a care leaver, or a young carer. Geography also matters: identical backgrounds face different barriers depending on location, such as transport access.
3. Health Issues, Including Mental Health
Health has become central to Neet status. Young people are now more likely to be economically inactive (53%) than unemployed (47%), with rising health-based inactivity due to anxiety, depression, or neurodevelopmental conditions. About seven in 10 young people claiming a health and disability benefit still do so a decade later. The report criticises the NHS for focusing on categorising young people as unable to work rather than helping them back, calling the GP 'fit note' system a 'poster child for this structural failure.'
4. Social Security System Inadequate
For every £25 the Department for Work and Pensions spends on benefits for young people, only £1 goes to helping them back into work. Support tends to focus on those with fewest barriers, leaving those with greater difficulties alone. Almost half of those who first claim a health or disability benefit aged 16-24 are still out of work or education a decade later. The report argues the system amplifies Neet status, noting that while the UK and Netherlands have similar rates of youth anxiety, the Dutch Neet rate is notably lower.
5. Difficult Labour Market
Young people report sending dozens of CVs rejected by AI or facing AI simulations without ever speaking to a human. Entry-level jobs in retail, customer service, and warehousing are scarcer or more specialised. Employers are less willing to hire younger staff due to higher minimum wages and the 'pastoral burden' of young people's needs.
6. Structural Issues Across the Board
The report highlights the housing market, where young people assume they will never afford a home, lacking stability for work or training. Schools perform well academically but offer little support for what comes next. The system for helping young people is fragmented and varied, with minimal monitoring or accountability.
7. Not About Laziness
Milburn rejects myths about a generation uninterested in work or hiding behind mental health excuses. The overwhelming majority of Neets want to find work, education, or training. They are a product of a changed world: 'Young people are different from those who came before them. Not worse. Not lazier. Not less intelligent. But different in ways that have material consequences.'
