Milburn report identifies structural failure behind UK’s one million NEET youth

Former cabinet minister Alan Milburn has released the first part of a government-commissioned report detailing the crisis facing young people in the UK who are not in education, employment or training (NEET). The 217-page document outlines a "record of failure" affecting approximately one million youths, estimating the cumulative economic cost at £125bn. Milburn, serving as a social mobility adviser, describes the situation as a moral crisis that risks creating a lost generation, noting that the NEET rate is now worse than all EU nations except Romania.

The report explicitly rejects the notion that the rise in NEET figures is driven by individual workshyness or laziness. Instead, it attributes the trend to deep-seated structural issues, including wealth disparities, geographic inequality, and health barriers. The data reveals stark regional divides, with Barnet in north London recording a NEET rate of just 1 per cent for 16- and 17-year-olds, compared to 21.5 per cent in Dudley, in the West Midlands. Eight of the ten English local authorities with the highest proportions of young people out of work or education are located in the north or Midlands.

Health has emerged as a central factor in who becomes and remains NEET. The report notes that young people in this category are now more likely to be economically inactive due to anxiety, depression, or neurodevelopmental conditions than to be classified as unemployed. Milburn criticises the Department for Work and Pensions (DWP) for prioritising benefits over reintegration, highlighting that for every £25 spent on benefits, only £1 is devoted to helping young people back into work. The NHS fit note system is also singled out as a "poster child" for structural failure, with the report arguing it categorises young people as unable to work rather than facilitating their return.

Recruitment practices and the broader support landscape further exacerbate the issue. The study identifies the negative impact of AI-driven recruitment, where entry-level candidates report sending dozens of CVs that are rejected by algorithms without human contact. Employers are also described as less willing to hire younger staff due to minimum wage costs and the perceived "pastoral burden" of supporting young people’s needs. Meanwhile, existing support systems are characterised as fragmented and focused on those with the fewest barriers, leaving the most vulnerable without adequate assistance.

Despite the grim statistics, Milburn emphasises that the majority of NEET young people desire work, education, or training. He argues that these youths are not worse or less intelligent than previous generations but are navigating a changed world with different material consequences. The report calls for a shift away from myths about disengagement and towards addressing the systemic risks, including housing instability and inadequate career guidance, that prevent young people from securing a foothold in the economy.