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Milburn Review Finds £25-to-£1 Gap in Spending on Youth Benefits vs Employment Support

5/23/2026, 8:40:44 PM

Youth Inactivity Context

The Office for National Statistics reported 957,000 16- to 24-year-olds in the UK were NEET between October and December 2025 – 12.8 % of the cohort and the highest level in over a decade. Over half were economically inactive, not seeking work. The government commissioned former Labour health secretary Alan Milburn, a Tony Blair-era minister, to examine the causes.

Spending Disparity

Milburn compared spending on benefits for young people – such as Universal Credit, Personal Independence Payment, Disability Living Allowance and Job-Seekers’ Allowance – with funding for state-run employment programmes run by the Department for Work and Pensions and Jobcentre Plus. The review found a £25-to-£1 gap, describing the ratio as “shameful.”

Key Data

The ONS data show 957,000 NEETs (12.8 % of 16-24-year-olds) and a benefit-to-employment-support spending ratio of roughly 25 : 1; the review’s methodology will be released later.

Official Statements & Responses

The government tasked the review to uncover systemic failures in welfare, education, skills and health. Milburn says the findings reveal a “widespread failure on behalf of the state” and urges a “system reset” with benefits reform, coupled with broader institutional changes to improve outcomes for young people.

Criticism & Opposition

Some Labour MPs have warned that welfare reforms could harm vulnerable groups, and the government has already delayed several benefit changes after internal opposition, underscoring disagreement over reform pace and scope.

Verbatim Quotes

  • “This is a failure. This is the failure of the welfare system, but it's a failure, I'm sorry, of the school system, the skills system, the health system,” — Alan Milburn, Former Labour Health Secretary
  • “What is shameful [...] is that as we've uncovered in the course of this review for every £25 that we spend keeping young people on benefits, we spend only a pound helping them get into work through employment support,” — Alan Milburn
  • “It's the party of work. Work gives purpose. Work gives income. Work gives meaning.” — Alan Milburn

Conflicting Reports & Gaps

The review’s methodology and exact spending figures remain unpublished, preventing verification of the 25-to-1 ratio. Policy recommendations are due later this year, leaving the details of the proposed “system reset” undefined.

What’s Next

Milburn will release detailed recommendations later this year on benefits reform and broader institutional changes. The government says the proposals will guide policy to reduce youth inactivity and rebalance spending between benefits and employment support.