Alan Milburn, the former Labour minister tasked with investigating youth unemployment, has labelled the current government’s approach to benefits for young people as “shameful”. His comments come as new figures reveal that the UK spends twenty-five times more on benefits for young people than on initiatives to support them into employment. With nearly a million young individuals classified as not in education, employment, or training (NEET), Milburn calls for a radical overhaul of the welfare system.
Alarming Statistics on Youth Unemployment
In a revealing interview on BBC’s *Sunday with Laura Kuenssberg*, Milburn—who led a comprehensive review into youth inactivity—highlighted the alarming statistic that 957,000 young people were NEET from October to December 2025, representing 12.8% of 16 to 24-year-olds. Over half of this group is considered economically inactive, having ceased searching for work altogether.
Milburn’s assessment is grounded in the fiscal disparity between welfare spending and employment support. The forthcoming report, set to be released this week, will detail the methodology behind his findings and provide further insights into the state of youth employment.
A Call for Systemic Reform
Milburn argues that the current welfare structure is failing young people on multiple fronts, citing shortcomings not only in the welfare system but also in education and health services. He stated, “This is a failure… we’re not prioritising getting young people into a situation where they can be learning or earning.” He emphasised that the excessive focus on benefits has dire implications for young people’s future prospects.
The former health secretary underscored the urgent need for reform, asserting that for every £25 spent on benefits, only £1 is allocated to employment support. “What is shameful,” he remarked, “is that we’re transporting them into the world of benefits with incalculable costs for their life chances.”
Labour’s Role in Welfare Reform
Addressing concerns within the Labour Party regarding potential welfare changes, Milburn reinforced the party’s commitment to work as a fundamental value. “Labour is what it says on the tin,” he asserted. “It’s the party of work. Work gives purpose. Work gives income. Work gives meaning.” He stressed that welfare reform must be part of a broader strategy to enhance state institutions and create pathways for young people into the workforce.
Moreover, Milburn plans to present a series of recommendations later this year aimed at tackling the barriers young individuals face when seeking employment, including the rise in mental health issues. He believes that while these challenges are significant, they should not deter young people from being encouraged to pursue job opportunities.
The Disappearance of Entry-Level Positions
With a notable decline in part-time job availability for young people, Milburn lamented the loss of entry-level roles that historically served as stepping stones into the workforce. Reflecting on his own experiences, he shared a personal anecdote about being sacked from his first job at the age of 13 for not delivering newspapers on time, illustrating the importance of early job experiences in fostering responsibility and work ethic.
He pointed out, “Effort and reward, there’s something going on here,” highlighting the need for young people to engage with the job market. The trend of diminishing entry-level jobs, he noted, has persisted for around 25 years, exacerbating the challenges young people face today.
Why it Matters
Milburn’s call for a comprehensive review and reform of the welfare system is not merely a critique of current policies but a pressing reminder of the urgent need to invest in the future of the UK’s youth. As the nation grapples with rising levels of NEET individuals, the implications of failing to act are profound—both for the individuals affected and for society as a whole. By shifting focus from welfare dependency to meaningful employment opportunities, the government can help reintegrate this vital demographic into the workforce, ultimately strengthening the economy and enhancing social cohesion.
