How Britain failed one million NEET young people: 'We're wasting a generation’s talent'

More than a million young people across the country are now not in employment, education or training (NEET), official new figures show.

It is the highest level in 12 years and means that 13.5% of this age group either cannot work, are struggling to find opportunities, or may not be looking at all.

Research shows this is likely to cause long-term damage in their lives and could affect them decades later – and it will also have devastating consequences for the British economy.

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So, how did the country get here? Former health minister Alan Milburn, who has been commissioned by the government to review the levels of youth unemployment, argues that it is a “whole-system failure”.

“This is not a failure of young people,” Milburn wrote in the first part of his report published on Thursday (28 May). “It is a failure of a system stuck in the past. It would be easier to blame one thing: Covid, smartphones, benefits, schools, employers, parents or young people themselves.

“The evidence does not support a single explanation. It supports something harder to accept: that the institutions we built to support young people into adulthood are no longer fit for that purpose, and that the country has known this for some time.”

Rising ill health, a hands-off benefits system, a weak labour market, a changing digital world and limited vocational education are all identified in the report as key drivers of youth unemployment.

There were an estimated 1,012,000 young people aged 16 to 24 who were NEET in January to March 2026. This was an increase of 89,000 compared with the year before and up by 55,000 on October to December 2025.

The Labour government has talked about tackling the numbers of NEET young people since coming into power, and it was a key reason given for its plans to slash disability benefits.

These proposals caused so much controversy among Labour MPs that ministers were forced to backtrack on cuts to personal independence payment (PIP) – although they continued with slashing the health element of universal credit in half for new claimants.

Milburn has said he wants to see a fresh approach from the government to overhauling the welfare system and employment support for young people.

He argues in the report that “the welfare system must always protect those who cannot work and provide proper financial security for people with severe or enduring disabilities”.

“But for young people who could participate with the right support, the welfare system should be more than a safety net. It should be a springboard,” he added.

Analysis for the review revealed that of the young people who are NEET in England, only around one in five are getting meaningful employment support from the welfare system.

Laura Trevelyan, campaign manager for Amnesty International UK, said: “The Milburn review has to be a wake up call. It’s alarming that so many young people are unable to find work, whilst those that do aren’t being paid enough to afford the essentials.

“The first step is a root and branch review of our social security system, so that it prevents young people falling into poverty, instead of punishing them for not having the decent paying jobs that simply don’t exist.”

The British Medical Journal estimates that more than half (52.9%) of NEET cases are directly attributable to growing up in poverty. Young people who had been exposed to both persistent poverty and poor parental mental health in childhood were five times more likely to be NEET than those in low poverty and adversity.

Britain faced more than a decade of austerity under the Conservative government, which saw public services decimated. Cuts to the NHS, social care services and mental health support have led to long waiting lists and people struggling to access the help they need to stay healthy.

Big Issue has previously reported on how disability and ill-health are behind the rising levels of NEET young people.

As the Milburn report notes, the pandemic “hit them hard and amplified the greater anxiety they were already feeling” and the cost of living crisis has caused further damage to people’s physical and mental health and contributed to rising poverty, as well as putting further financial pressures on employers.

Previous generations could reasonably expect that the transition from education to work would lead to financial independence with a job, a rented flat, and a sense of their life moving forward, according to Milburn. “That expectation has collapsed,” he wrote.

Over the past decade, the proportion of people who say they are NEET due to a work-limiting health condition has increased by 70%, the Milburn report found. The proportion of disabled NEETs citing mental health as their primary condition has almost doubled to more than four in 10.

Andy Bell, chief executive of Centre for Mental Health, said: “Today’s report is clear. Young people in Britain today have poorer mental health than previous generations. They are just as keen to work, and they want a better future. But years of inaction across health, education and employment services have let young people down.

“The changing labour market and the dominance of digital communication in young people’s lives have added extra pressure. Yet too many times young people have been blamed unfairly for the challenges they are facing.”

In 2024-25, 29.6% of disabled young people were NEET in the UK compared with 8.7% of non-disabled peers.

The Milburn review calls on employers to remove the barriers young disabled people face when trying to find and stay in work, such as addressing inaccessible recruitment processes, inflexible workplaces and a lack of tailored support.

James Watson-O’Neill, chief executive of national disability charity Sense, said: “Disabled people should not be forced to fit around systems that were never built for them. It is the responsibility of government, employers and public services to create environments where disabled people can thrive, contribute and live with dignity.

“But we must also be clear that not all disabled people can work, and their value cannot be measured by employment alone. A fair society is one that supports disabled people to live independently and free from poverty, whether or not paid work is possible.”

O’Neill reiterates that the welfare system plays an important role in helping disabled people stay in work and out of poverty. PIP is not an out-of-work benefit – instead, it helps cover the extra costs disabled people face every day, including specialist equipment, transport costs and care, all of which will help people stay in work.

A review of the PIP assessment process led by disability minister Stephen Timms is expected to conclude in autumn. The government has agreed not to proceed with any plans to reform the benefit until it is published.

Analysis from the Institute of Public Policy Research (IPPR) shows that on current trends, the number of young people who are NEET could rise from around one in eight today to one in six by the end of 2029. 

Ellie Harris, principal research fellow and head of children and young people at IPPR, said: “Over one million young people being out of work and out of education is a national crisis. Yes, it’s an economic challenge, but it’s also a human tragedy – young people are being blocked from learning new skills, getting their first job and becoming independent.  

“We’re wasting a generation’s talent, skill, and potential. We must act urgently, so that young people are supported to live a life of opportunity, that gives them a sense of self-worth.”

What is being done to help young people into work?

Only the first part of the Milburn review has been published so far, with potential solutions expected to be set out in the next part of the report due to be published later this year.

Work and pensions secretary Pat McFadden said he commissioned the report “because we cannot afford to lose a generation of young people”. He welcomed Milburn’s “vital work which lays bare the scale of the challenge and the root causes of youth unemployment we now need to confront”.

The minister claimed to have already brought forward “the biggest youth employment reforms in a generation to create 500,000 opportunities for young people”, including a youth jobs grant for businesses starting next month, more apprenticeships, and subsidised employment for young people.

“Early intervention is also key, and that’s why we are supporting families with special educational needs, lifting over half a million children out of poverty, and improving vocational learning to give every young person the best start in life,” McFadden said.

“But we know there is more to do. I will work across government and with employers, charities and young people to drive real change, so more young people are earning or learning, not left behind. I look forward to working with Alan as he brings forward his final recommendations later this year.”

Big Issue Group is also working to support young people into work.

Big Issue Recruit is a free recruitment service for people who’ve experienced challenges like homelessness, long-term unemployment, or a lack of qualifications.

Our latest group impact report showed Big Issue Recruit supported 520 new job candidates in 2025.

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