More than one million 16- to 24-year-olds in the UK are now not in education, employment or training (NEET) – the highest level in over a decade – and the figure is projected to reach 1.25 million by 2031, according to a landmark government-backed report. The review, led by former Labour cabinet minister Alan Milburn, warns that youth disengagement costs the economy £125bn a year and risks creating a “lost generation”.
The report, published on Thursday, describes the current situation as a “record of failure” and calls for a fundamental reset of policy across schools, the health service and the welfare system. Official figures confirmed that the number of young people NEET has surpassed one million for the first time since 2012. The analysis projects that without urgent intervention, one in six young people could be NEET by 2031.
“More than one million young people in the UK are NEET, the highest in a decade, with numbers set to reach 1.25m by 2031, costing £125bn a year. A major report warns of a 'lost generation' and calls for urgent policy reforms.”
Alan Milburn said the government had a “responsibility to the next generation” to take action, warning that opportunities were “shrinking for too many young people”. He urged ministers to treat youth disengagement as a mounting economic risk and to overhaul support for those struggling to find work or training.
The crisis affects young people across all parts of the UK, though regional variations are not detailed in the report. However, the scale of the problem – already at its highest in a decade – is described as a national issue requiring a co-ordinated government response.
The Work and Pensions Secretary told Channel 4 News: “We can’t afford 1m of young people not in education, employment or training.” The Department for Work and Pensions is expected to announce fresh welfare reforms in the coming weeks, building on earlier changes. The Guardian reports that Labour is “poised for a fresh attempt at changing the welfare system” in response to the findings.
The report recommends stronger links between schools and employers, better mental health support for young people, and reforms to the benefits system to make work pay. Milburn called for a “reset” of the relationship between the state and young people, with earlier intervention to prevent long-term disengagement.
What This Means For You - Young people: Job prospects are worsening, with fierce competition for entry-level roles. The report suggests more investment in training and apprenticeships, but until reforms take effect, many may struggle to find stable work. - Families: Parents of NEET young people could face extended financial dependence. The government is considering changes to Universal Credit and support for job-seeking. - Taxpayers: The £125bn annual cost of youth disengagement – including lost productivity and higher welfare spending – ultimately falls on public finances. Reducing NEET numbers could ease pressure on the economy. - Employers: Businesses may find it harder to recruit skilled young workers. The report calls for more employer-led training schemes to bridge the skills gap.