Alan Milburn, the former cabinet minister and social mobility adviser, has published the first part of his government-commissioned report on the rising number of young people not in education, employment, or training (NEET). The 217-page document paints a damning picture of structural issues affecting approximately 1 million 16- to 24-year-olds across the UK, calling it a "record of failure."
A Growing and Entrenched Problem
The report highlights that about one in eight young people in the UK are NEET, a rate that has worsened over the past decade. A decade ago, the UK's NEET rate was near the EU average; by 2025, only Romania had a worse rate. The problem is increasingly entrenched, with six in ten NEETs never having held a job, compared to four in ten in 2005. Milburn warns of a "lost generation" and estimates the cumulative economic cost at £125 billion.
Inequality as a Core Driver
The report emphasizes that NEET rates are strongly linked to structural inequalities in wealth, background, geography, and ethnicity. For instance, in Barnet, north London, only 1% of 16- and 17-year-olds are NEET, while in Dudley, West Midlands, the figure is 21.5%. Eight of the ten local authorities with the highest NEET rates are in the north or Midlands. Risk factors include low educational attainment, special educational needs, persistent school absence, and being a care leaver or young carer. Geographic barriers, such as transport, also play a role; London's low NEET rate is partly attributed to its extensive public transport and free or discounted youth travel.
Health and Mental Health
Health has become central to the NEET crisis, according to Milburn. Young people who are NEET are now more likely to be economically inactive (53%) than unemployed (47%), with rising inactivity due to anxiety, depression, and neurodevelopmental conditions. Long-term consequences are severe: about seven in ten young people claiming health and disability benefits remain on them a decade later. The report criticizes the NHS for focusing on categorizing young people as unable to work rather than helping them return to work, calling the GP "fit note" system "the poster child for this structural failure."
Welfare System Failures
The social security system is found to be ineffective. For every £25 spent on benefits for young people, only £1 is spent on employment support. Support tends to focus on those with fewer barriers, leaving those with greater needs isolated. Nearly half of young people who first claim health or disability benefits are still out of work or education a decade later. While not the root cause, the welfare system amplifies the NEET problem. The report notes that the Netherlands, with similar rates of youth anxiety, has a much lower NEET rate.
Labour Market Challenges
Young people report sending dozens of CVs that are rejected by AI or subjected to AI simulations without human interaction. Entry-level jobs in retail, customer service, and warehousing are scarcer or more specialized. Employers are less willing to hire younger staff due to higher minimum wages and the perceived "pastoral burden" of young people's needs.
Structural Issues
The report identifies multiple structural barriers, including the housing market, which undermines stability for planning work or training. Schools perform well academically but provide little support for career planning. The system for helping young people is fragmented, with minimal monitoring or accountability.
Rejecting Myths
Milburn explicitly rejects the "sometimes cruel" myths that young people are lazy or use mental health as an excuse. He states that the overwhelming majority of NEETs want to work, study, or train but are products of a changed world. "Young people are different from those who came before them. Not worse. Not lazier. Not less intelligent. But different in ways that have material consequences," he writes.
