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In a stark indictment of the UK’s welfare system, former minister Alan Milburn has revealed that the government allocates a staggering £25 on benefits for young people for every £1 spent on supporting their transition into employment. With nearly one million young individuals classified as NEET (Not in Education, Employment, or Training), Milburn is calling for an urgent overhaul of the current system, which he labels “shameful.” His comments come ahead of the publication of his government-commissioned report, which aims to address the alarming rise in youth inactivity.
A System in Crisis
Milburn’s assertions, made during an interview on the BBC’s *Sunday with Laura Kuenssberg*, highlight a disconcerting trend in government spending priorities. The former Labour health secretary was tasked with investigating the factors contributing to the highest NEET rates in over a decade. According to the Office for National Statistics, as of late 2025, 957,000 young people, representing 12.8% of their age group, found themselves outside the workforce, education, or training programmes.
More than half of these individuals were classified as economically inactive, indicating a troubling disconnect between youth aspirations and the support systems supposed to propel them forward. Milburn argues that this failure is a result of systemic shortcomings across various sectors, including education, health, and welfare.
“This is a failure of the welfare system, but it’s a failure, I’m sorry, of the school system, the skills system, the health system,” Milburn asserted. His upcoming report promises to delve deeper into these issues, revealing a comprehensive analysis of the barriers preventing young people from entering the job market.
A Call for Reform
The ratio of spending on welfare to employment support has raised eyebrows, with Milburn stating, “What is shameful […] is that as we’ve uncovered in the course of this review, for every £25 that we spend keeping young people on benefits, we spend only a pound helping them get into work through employment support.” This profound imbalance suggests a need for a radical rethinking of how resources are allocated, particularly in light of the current economic climate.
Milburn advocates for a “system reset,” urging Labour to embrace welfare reform as a critical component of their platform. “Labour is what it says on the tin. It’s the party of work. Work gives purpose. Work gives income. Work gives meaning,” he emphasised, pushing back against concerns within the party regarding the potential backlash from welfare reform.
The forthcoming report will outline specific recommendations for addressing these issues, with Milburn stressing that reform must occur alongside broader changes to state institutions. He also emphasises the need to confront growing mental health challenges among young people, while asserting that such concerns should not preclude them from being encouraged into the workplace.
The Vanishing Entry-Level Jobs
Milburn’s commentary extends to the diminishing opportunities available for young job seekers. He recalls his own experiences of employment, noting the scarcity of part-time jobs that once served as a vital entry point into the workforce. “Entry-level jobs are disappearing… they’ve gone,” he lamented, highlighting a trend that has persisted for approximately 25 years.
With many young individuals submitting dozens, if not hundreds, of job applications without receiving responses, the frustration is palpable. Recruitment expert James Reed echoed these sentiments, pointing to a continuous decline in job vacancies and calling for Chancellor Rachel Reeves to reconsider the recent increase in employer National Insurance contributions, which he argues exacerbates the difficulties faced by employers in hiring.
Why it Matters
The implications of Milburn’s findings are profound for the future of Britain’s youth and the economy at large. By prioritising benefits over employment support, the government risks entrenching a cycle of dependency that stifles ambition and potential. As youth unemployment continues to rise, the call for comprehensive welfare reform becomes not just a political necessity but a moral imperative. The choices made today will shape the landscape of tomorrow’s workforce, ultimately determining the trajectory of the nation’s socio-economic health.
