More than one million 16 to 24-year-olds in the UK are now not in education, employment or training, the highest level in over a decade, as a landmark government-backed report warns the figure could rise to 1.25 million by 2031.
The report by former Labour cabinet minister Alan Milburn, commissioned by the government, says youth disengagement is costing the UK economy £125bn a year and risks creating a 'lost generation' of young people.
“A major report warns that the number of 16-24 year olds not in education, employment or training has surpassed 1 million for the first time in over a decade, costing the UK £125bn a year and risking a 'lost generation'. Labour is poised for fresh welfare reforms.”
Official figures released alongside the report show the number of NEETs (not in education, employment or training) has passed the one million mark for the first time since 2014. The problem is particularly acute among 18 to 24-year-olds, with many struggling to find work after leaving school or university.
Milburn's analysis warns that without urgent action, the proportion of young people out of work or training could rise to one in six by 2031. He called for a fundamental reset of policies covering schools, the health service and the welfare state.
The report highlights regional disparities across the UK. In parts of northern England, Wales and Scotland, NEET rates are significantly higher than the national average. Youth unemployment is especially severe in coastal towns and former industrial areas, where job opportunities remain scarce.
The Work and Pensions Secretary told Channel 4 News: 'We can't afford one million of young people not in education, employment or training.' The minister signalled that the government is poised to make fresh changes to the welfare system to address the crisis.
Speaking to the Guardian, Milburn said: 'A record of failure has left too many young people without the skills, support or opportunities they need.' He urged ministers to take responsibility for the next generation.
The Financial Times reports that ministers are considering new measures to boost training and apprenticeships, as well as reforms to benefits designed to incentivise work.
What happens next? The government is expected to set out a detailed response to the Milburn report in the coming weeks, with potential welfare reforms and a new youth guarantee scheme under discussion.
What this means for you: For young people and their families, the report signals growing competition for jobs and training places. Parents may need to consider alternative routes such as apprenticeships or further education. Employers may face increased pressure to offer entry-level roles. The expected welfare changes could affect benefit entitlements for young jobseekers. With the NEET figure projected to rise, the government's response will be closely watched by schools, colleges and businesses across the country.