Full Breakdown
Milburn Review Warns of Growing NEET Crisis
5/28/2026, 10:52:25 AM
Background & Context
Former Labour health secretary Alan Milburn was tasked by the UK government to examine youth unemployment (NEETs) and concluded that outdated education, health and welfare systems have driven a rise in NEET numbers and eroded entry-level jobs.
Data & Statistics
NEETs total about 957,000 (?1 in 8) and could rise to 1.25 million (?1 in 6) by 2031; 84 % want work or training. Six in ten have never held a job, up from four in ten twenty years ago. Low- and medium-skilled jobs are 1.6 million fewer, apprenticeship starts down 35 %, hospitality vacancies halved and Saturday jobs disappearing. For each £1 spent on under-25 employment support, about £25 goes to benefits.
Official Statements & Responses
Milburn called the situation a “system stuck in the past” and urged a shift to a “working state” where benefits act as a springboard, not a safety net, calling for cross-party action to encourage employers to hire young people. Stuart Machin, chief executive of Marks & Spencer, called the findings “shocking but not surprising” and cited his own Saturday retail job as a career catalyst. Rain Newton-Smith, chief executive of the Confederation of British Industry, called the crisis a “tragic waste of potential” and said lowering job-creation costs would open more opportunities.
Criticism & Opposition
Lord Simon Wolfson, former Next chairman, blamed Chancellor Reeves’ tax rises for squeezing entry-level jobs; John Caudwell, founder of Phones 4u, warned AI will hit the jobs market “like a tsunami” and said minimum-wage hikes and red tape made youth unemployment “dreadful”. Several executives argue recent Labour policies, including higher minimum wages and workers’ rights legislation, have worsened hiring in low-margin sectors such as retail and hospitality.
On-the-Ground Reports
Machin said a Saturday retail job built his confidence and gave him skills that launched his career, showing the value of entry positions, while Milburn highlighted a 70 % rise in people reporting health conditions and a doubling of mental-health issues among NEETs.
Conflicting Reports & Gaps
Some sources cite the baseline as “one in eight” while others give a raw figure of 957,000; both agree the projection is “one in six”. No official government response beyond Milburn’s remarks appears in the sources.
Verbatim Quotes
- “We are at risk of a lost generation,” — Alan Milburn, former Labour health secretary
- “Six in ten have never had a job. Twenty years ago, that figure was closer to four in ten. Detachment is no longer temporary. For too many young people it is becoming permanent. We are at risk of a lost generation,” — Alan Milburn
- “Next boss Lord Simon Wolfson said Reeves’ tax rises had squeezed entry-level jobs.” — Lord Simon Wolfson, former chairman, Next
What's Next
Milburn urges immediate cross-party action and a shift toward a “working state”. The review is expected to shape debates on benefit spending, minimum-wage policy and incentives for employers to create entry-level positions.
