Alan Milburn, a senior figure within the Labour Party, has issued a stark warning about the growing number of young people in the UK who are neither in employment, education, or training (commonly referred to as NEETs). He described the situation as a “catastrophe,” with nearly one million young people currently affected—a figure he predicts could rise to 1.25 million within five years if no urgent intervention occurs.

Milburn attributes part of the problem to recent government policies, including tax increases on sectors such as hospitality and retail, which he says have diminished the availability of entry-level jobs. He also points to shortcomings in the welfare system, which, in his view, inadvertently make government benefits more financially appealing than low-wage work to some young people. Since the Covid-19 pandemic, tens of thousands of under-25s have been able to access mental health-related benefits with minimal oversight and without a requirement to seek employment, contributing to a cycle of dependency.

In addition to these internal challenges, Milburn highlights the impact of immigration on the youth labour market. A recent report from the Centre for Social Justice revealed that the number of under-25 non-EU migrants employed in the UK has surged by 355% over the past five years, with 27 young foreign workers being hired for every one additional young British worker. This influx, he argues, has intensified competition for jobs and worsened prospects for young British workers.

The crisis extends to the everyday experiences of young people and their families. Many face repeated rejections in the job market, often being turned down for entry-level roles due to lack of experience. As a result, confidence erodes, and some young people withdraw from active participation in the labour market altogether. Milburn emphasises that most young people aspire to work and contribute, with 84% of NEET individuals in his review expressing a desire for employment or training opportunities.

To address these issues, Milburn calls for reform across multiple sectors. Employers should lower barriers to entry by providing more opportunities for work experience and apprenticeships. Education providers must better equip young people with both academic skills—such as literacy and numeracy—and practical, employability skills like communication and reliability. There is also a need to diversify career pathways, elevating vocational and technical routes to the same status as university education.

Mental health support requires recalibration to avoid creating a “benefits trap.” While acknowledging that young people are facing increased anxiety and loneliness partly due to the pandemic and social media influences, Milburn contends that health-related benefit claims have doubled recently, sometimes without sufficient drive to re-engage claimants in work or training. Currently, spending on benefits for young people outweighs investment in employment support by a ratio of 25 to 1.

Milburn points to international examples such as the Netherlands, where earlier intervention and stronger connections between education and local employment have kept fewer young people disconnected from work or education. His ongoing review aims to provide a framework for reform, urging the government to move from a welfare system that manages failure to one that promotes skills development and opportunity.

He further criticised Labour leader Keir Starmer’s handling of internal party dynamics, suggesting that stronger leadership is needed to implement necessary reforms. Milburn underscored that the future economic and social strength of the UK depends on its ability to support young people in finding meaningful employment and rebuilding the social contract that previous generations relied upon.