A stark imbalance in government spending on young people in the UK has emerged, with a new report indicating that 25 times more is allocated to benefits than to programmes aimed at helping them secure employment. Alan Milburn, the former Labour health secretary and author of a forthcoming review on youth inactivity, described this discrepancy as “shameful.” With nearly one million young individuals classified as NEET (not in education, employment, or training), Milburn insists that a comprehensive overhaul of the welfare system is urgently required.
Alarming Statistics on Youth Unemployment
In an exclusive interview with BBC’s *Sunday with Laura Kuenssberg*, Milburn revealed some unsettling figures regarding youth unemployment. According to the latest data from the Office for National Statistics, there were approximately 957,000 young people in the UK classified as NEET from October to December 2025, representing 12.8% of the 16 to 24 age group. This marks the highest level of youth inactivity in over a decade. More than half of these individuals are considered economically inactive, as they are not actively seeking work.
Milburn’s analysis is grounded in government spending patterns, highlighting that for every £25 spent on benefits like Universal Credit and Job Seeker’s Allowance for young people, only £1 is dedicated to employment support initiatives. This disparity raises critical questions about the effectiveness of current policies aimed at fostering youth employment.
A Call for Systemic Reform
The former minister’s report, expected to be released soon, will delve into the multifaceted failures that contribute to the alarming NEET statistics. Milburn attributes the crisis not only to deficiencies in the welfare system but also to shortcomings in education, skills training, and mental health support. “This is a failure,” he stated, emphasising that the existing framework is failing to prioritise pathways for young people to transition from education into meaningful work.
In response to concerns within the Labour Party regarding welfare reforms, Milburn is clear: “Labour is what it says on the tin. It’s the party of work. Work gives purpose. Work gives income. Work gives meaning.” He argues that welfare reform must be part of a broader strategy that addresses the systemic issues plaguing state institutions.
The Impact of Mental Health and Job Availability
The forthcoming report will also shed light on the increasing mental health challenges faced by young people today. While Milburn acknowledges the reality of these issues, he asserts that they should not preclude young individuals from being encouraged to enter the workforce. He noted a troubling trend: the decline in availability of part-time jobs, which traditionally served as entry points into the labour market.
Drawing from his personal experience, Milburn recounted how he learned the value of effort and reward early on when he was dismissed from his first job for failing to deliver newspapers. He remarked, “Entry-level jobs are disappearing,” highlighting a worrying trend over the past 25 years that has seen opportunities for young people diminish significantly.
The Importance of Reform
As Milburn prepares to unveil his recommendations later this year, he underscores the need for a systemic reset within the welfare framework. He advocates for immediate action, suggesting that reforms must focus on creating an environment where young people can thrive through employment rather than relying solely on benefits.
Why it Matters
The implications of Milburn’s findings are profound. With youth unemployment posing a serious threat to the future of the UK workforce, addressing this imbalance in government spending is not just a matter of economic efficiency—it is a moral imperative. As the country grapples with the challenges of a rapidly changing job market, prioritising the support of young people into gainful employment will be crucial for fostering a resilient and productive society. Failure to act risks entrenching a cycle of dependency that could have lasting repercussions for generations to come.
