A landmark government-backed report has warned that the number of 16- to 24-year-olds not in education, employment or training (NEET) is set to rise to 1.25 million by 2031, up from more than 1 million currently.
The report, described as a major review into youth disengagement, says the UK risks a 'lost generation' of young people. Former Labour cabinet minister Alan Milburn, who led the review, said youth disengagement was a 'mounting economic risk' and called for a 'fundamental reset' of policy covering schools, the health service and the welfare state.
“A landmark report warns the number of NEET young people in the UK could reach 1.25 million by 2031, calling for urgent policy reform to avoid a 'lost generation'.”
Current figures show that more than one in six young people in the UK are NEET, and the report warns that without action, this proportion will grow. The Work and Pensions Secretary acknowledged the scale of the problem, saying: 'We can't afford 1m of young people not in education, employment or training.'
Across the UK, the issue affects all regions, but areas with higher deprivation and fewer job opportunities are particularly hard hit. The hospitality sector, a traditional entry point for young workers, has seen vacancies halve since the Covid-19 pandemic, according to industry data cited in the report.
The report urges ministers to make a fresh push on welfare reform and to integrate support across education, health and employment services. Alan Milburn said the current system is failing young people and that a coordinated response is needed.
What happens next? The government is expected to respond to the review in the coming weeks. Ministers have indicated they will consider the recommendations, which include changes to the benefits system and greater investment in skills training.
## What This Means For You - For young people: Finding a job or training place is becoming harder, especially in sectors like hospitality. The review recommends more tailored support and better careers advice. - For parents: You may need to help your children navigate a tougher jobs market. The report calls for improved mental health support in schools and colleges. - For jobseekers: With competition for entry-level roles increasing, the review suggests more apprenticeships and employer incentives. - For employers: The report urges businesses to offer more opportunities for young people, including work experience and training placements. - For taxpayers: If youth disengagement rises, the cost to the welfare state and economy will increase. The review argues that early intervention is more cost-effective than dealing with long-term unemployment.