More than one million young people in Britain are now not in education, employment, or training (NEET), the highest figure since 2013, according to official data. A landmark review led by former Labour health secretary Alan Milburn warns that the UK faces a "lost generation" unless serious action is taken to address the crisis.
The Scale of the Crisis
The NEET crisis, affecting 16 to 24-year-olds, is costing Britain £125 billion annually—more than the entire education budget and nearly double defence spending. Milburn's interim report highlights a "generational fault line," blaming a lack of entry-level jobs due to a "failure of a system stuck in the past." Without urgent intervention, the proportion of NEET young people could rise from one in eight to one in six by 2031, affecting 1.25 million individuals.
Barriers to Employment
Milburn stated that the problem is "much worse" than initially thought, calling for cross-party efforts to find solutions. The review found that the first rung of the career ladder has "thinned," with first jobs or work experience often out of reach for many young people, trapping them in a "hopeless Catch-22." Six in ten NEET young people have never held a job, compared to four in ten two decades ago. "Detachment is no longer temporary. For too many young people, it is becoming permanent. We are at risk of a lost generation," Milburn warned.
Business and System Failures
Businesses have criticised the Labour government for policies that make it harder to create jobs for young people, including increases in the minimum wage and national insurance contributions. Milburn's review will examine the youth minimum wage, stressing that policy must provide "right incentives for employers to employ more young people." The report notes a sharp decline in entry-level jobs, with 1.6 million fewer low and medium-skilled positions in the economy. Hospitality vacancies have halved in four years, Saturday jobs are declining, and apprenticeship uptake has fallen by 35% over the past decade.
Systemic Imbalance
The review exposes a fundamental imbalance in public spending: for every £1 spent on employment support for young people in 2024/25, around £25 was spent on benefits. Personal Independence Payment (PIP) for 16 to 24-year-olds rose from £1.3 billion to £3.2 billion in five years. "The system pays for the problem. It does not solve it," the report states. Milburn emphasised that the benefits system should be a "springboard" not just a safety net, providing opportunities for work experience and first jobs.
Call for Action
Milburn urged a cross-party approach: "Whether it's Labour or Tory or Reform, I'm not really bothered. What we can't do is put a whole generation at risk." He backed Sir Tony Blair's call to review policies that hinder hiring young people, acknowledging that minimum wage and workers' rights changes have impacted low-margin sectors like retail and hospitality. Stuart Machin, CEO of Marks & Spencer, said the findings are "shocking but not surprising," noting that a Saturday job transformed his life. Rain Newton-Smith, CBI chief executive, called the report "a tragic waste of potential," urging businesses to reduce the cost of creating jobs. Brian Dow, CEO of Mental Health UK, praised the report for rejecting "lazy narratives" and called it a "turning point."
