The former Labour minister Alan Milburn has raised alarms over the UK government’s approach to supporting young people, asserting that it spends a staggering 25 times more on benefits than on employment programmes. In an exclusive interview with the BBC’s Sunday with Laura Kuenssberg, Milburn described the current welfare system as “shameful,” particularly in light of nearly one million young people classified as not in education, employment, or training (NEET). He has called for a comprehensive overhaul of the system to address these critical issues.
Alarming Statistics on Youth Employment
Milburn’s comments come as a stark reminder of the pressing challenges facing the younger population. Official statistics reveal that as of late 2025, approximately 957,000 individuals aged 16 to 24 were classified as NEET, which constitutes about 12.8% of that age group. This figure represents the highest level of youth inactivity in over a decade, prompting Milburn’s investigation into the systemic failures contributing to this crisis.
More than half of those identified as NEET are economically inactive, meaning they are not actively seeking employment. This stark statistic underscores a larger issue within the welfare system, as Milburn emphasised that the current spending disparity—where £25 is allocated for benefits compared to just £1 for employment support—highlights a significant misallocation of resources.
A Call for Systemic Reform
Milburn, who was commissioned to investigate youth inactivity, insists that the findings of his upcoming report will reveal a pervasive failure across multiple sectors—including education, health, and skills training. He stated, “This is a failure. This is the failure of the welfare system, but it’s a failure, I’m sorry, of the school system, the skills system, the health system.” His remarks suggest that a holistic approach is necessary to rectify the underlying issues hindering young people’s ability to enter the workforce.
He further asserted that the welfare system should not merely serve as a safety net but should actively facilitate pathways to employment. “We’re not prioritising getting young people into a situation where they can be learning or earning,” Milburn lamented, suggesting that reliance on benefits has detrimental long-term effects on young people’s life chances.
Future Recommendations and the Path Forward
While the full recommendations from Milburn’s report are expected later this year, he has already indicated that welfare reform will be a crucial component of any proposed changes. Addressing concerns within the Labour Party about such reforms, he reaffirmed, “Labour is what it says on the tin. It’s the party of work. Work gives purpose. Work gives income. Work gives meaning.”
Milburn also highlighted the growing challenges young people face in entering the workforce, including rising mental health issues. However, he cautioned against using these challenges as an excuse to lower expectations for young individuals. Instead, he argued for increased encouragement and support to help them transition into employment, noting that the availability of entry-level jobs has significantly diminished over the past 25 years.
Reflecting on his own experiences with employment at a young age, Milburn recalled being sacked from his first job for not delivering papers due to a lack of motivation. He emphasised the importance of learning from early work experiences, stating, “Effort and reward, there’s something going on here.” His observations suggest that the landscape for young job seekers is increasingly challenging, with fewer opportunities available for those entering the workforce.
Why it Matters
Milburn’s analysis and forthcoming recommendations could play a pivotal role in reshaping the future of youth employment in the UK. The current imbalance in government spending not only reflects a neglect of the nation’s youth but also poses significant long-term risks to the economy and society. By addressing the systemic failures that contribute to youth inactivity, there lies an opportunity to empower a generation, ensuring they are equipped with the skills and support necessary to thrive in the workforce. The implications of failing to act could reverberate for years to come, affecting not just individual lives but the nation’s economic health as a whole.
