Counting the true cost of our Neets

By the Editorial Team · Monday, October 5, 2026

Nearly one million young people in the UK are neither in education, employment, nor training (NEET), prompting political leaders to debate tougher measures and calls for a unified government strategy to address the issue. Experts warn that without coordinated action, including appointing a dedicated minister and assessing economic impacts, the long-term costs to society and public finances could total hundreds of billions of pounds.

Nearly one million young people in the United Kingdom are currently classified as not in education, employment, or training (NEET), a situation that has prompted renewed calls for a coordinated government response to address the issue’s long-term economic and social impact.

Kemi Badenoch, leader of the Conservative Party, recently invoked the phrase “tough love” to describe the approach needed to tackle the NEET crisis, borrowing language from Labour figure Alan Milburn. Milburn, who is preparing to publish the results of his own investigation, advocates for measures that could include cutting benefits as a last resort for young people deemed capable of working but who refuse to engage with employment or training programs. While this stance aligns with Badenoch’s views, it remains contentious. Critics warn that emphasizing “tough love” risks stigmatizing young people who face structural barriers, such as employer reluctance to hire due to rising minimum wage levels, increased National Insurance contributions, and enhanced worker protections.

Experts argue that addressing the NEET challenge requires more than individual responsibility; it necessitates a comprehensive government strategy that recognizes the scale of the problem and its potential consequences. Presently, responsibility is dispersed across multiple departments, including Education, Health, Work and Pensions, and the Treasury, complicating coherent policy action. Proposals have included appointing a dedicated Minister for NEETs to centralize authority and reduce bureaucratic fragmentation.

The economic ramifications of sustained youth disengagement from work or training are significant. Milburn estimates the combined social and economic costs to be roughly £125 billion annually. Supporting this assessment, Sir Charlie Mayfield’s Keep Britain Working report highlighted that a 22-year-old facing long-term exclusion from the workforce could experience lifetime losses exceeding £1 million, reflecting lower earnings and tax contributions, as well as increased government spending on welfare and health services. Other analyses suggest lifetime costs to the state may approach £750,000 for an unemployed individual with children.

Detrimental effects are often long-lasting. Milburn notes that around 70% of young people claiming health and disability benefits remain on them a decade later, while only about 25% of those unemployed for more than a year manage to secure work again. This points to the challenges of re-entering the labor market after extended periods of inactivity.

Advocates call for the Office for Budget Responsibility (OBR) to assess the fiscal risks posed by persistent NEET levels. Integrating such analysis into the OBR’s Fiscal Risks and Sustainability Report would quantify the issue in economic terms that could influence Treasury decisions and reinforce the case for preventive investment. The OBR has previously examined other forms of labor market inactivity but has yet to focus specifically on the NEET population.

As the government contemplates how to confront this multifaceted challenge, there is recognition that coordinated efforts, backed by rigorous economic analysis and targeted policy, are essential to prevent enduring social and fiscal consequences.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.