Britain faces a 25% rise in the number of young people not in work or education to 1.25 million by the early 2030s without urgent government action, according to a report by former Labour health secretary Alan Milburn. The review warns of a 'lost generation' unless the system is overhauled to address failures in education, health, welfare and the jobs market.
Milburn will call for a reset of the welfare system, which he argues is 'exacerbating inactivity'. 'This is not a failure of young people. It is a failure of a system stuck in the past,' he will say in the report, published on Thursday. He will push for reform of health and disability benefits alongside improved access to employment support.
Official figures due on Thursday are expected to show the number of young people not in education, employment or training (Neet) close to one million, the highest level for over a decade. Without action, the number could rise from one in eight to one in six young people within five years.
The report comes amid growing alarm over the prospects of the next generation, with rising mental ill-health, social media concerns and AI disrupting the jobs market. Unemployment has risen to its highest since the Covid pandemic, with young people hit hardest by the economic downturn following the Iran war.
However, the government faces criticism from business groups. Tina McKenzie of the Federation of Small Businesses said: 'Ministers cannot ignore the impact soaring employment costs are having on hiring.' She pointed to the chancellor's £25bn increase in employer national insurance contributions and stronger employment rights as factors fuelling the crisis in youth jobs.
