A review into youth employment and training has highlighted growing concerns that the benefits system may be undermining the ambitions of young people. Alan Milburn, former Health Secretary and Labour Party elder statesman, warned that nearly one million young individuals who are not in employment, education, or training—commonly referred to as NEETs—are at risk of becoming a “lost generation” reliant on state support.

Milburn, tasked with conducting the review following Labour’s decision to abandon planned welfare cuts amid internal opposition, described the situation as a “whole-system failure” that traps young people on benefits instead of helping them advance. His interim findings indicate that the proportion of NEETs could rise from one in eight to one in six over the next five years. According to Milburn, this shift would mark a transition from a welfare system that manages failure to one that actively promotes skill development, confidence, and future employment prospects.

The review spotlighted significant declines in job opportunities traditionally accessible to young people. For example, hospitality vacancies have fallen by half in the past four years, and the availability of Saturday jobs—which often serve as entry points into the workforce—is said to be in “freefall.” Additionally, apprenticeship starts have dropped by 35 percent over the last decade. Despite these challenges, survey data suggest that 84 percent of NEETs express a desire for work or training but feel there is inadequate support to help them secure such opportunities.

The youth employment crisis has drawn analysis from outside think tanks as well. The Centre for Social Justice attributed part of the problem to rising immigration levels, noting that since January 2020, there has been a net increase of 290,000 non-EU workers under the age of 25 on UK payrolls, compared with just 11,000 additional young British workers in the same period.

In response, Work and Pensions Secretary Pat McFadden acknowledged the ongoing challenges, stating, “We know there is more to do,” while emphasizing the government’s commitment to addressing youth employment and training issues.

Milburn’s review underscores the urgency of reforming the support and opportunities available to young people, aiming to prevent long-term dependence on benefits and to foster pathways into sustained employment.