An independent investigation will be launched to tackle the persistently high numbers of young people out of work, education and training, which ministers have warned is a “crisis of opportunity”.
The investigation will be led by former Health Secretary Alan Milburn. It will examine why increasing numbers of young people are falling out of work or education before their careers have begun, with a particular focus on the impact of mental health conditions and disability.
Nearly one million young people, approximately one in eight aged 16 to 24, are currently not in education, employment or training (NEET). Over a quarter of NEET young people now cite long-term sickness or disability as a barrier to participation, compared to 12 percent in 2013/14.
The number of young people claiming Universal Credit health and Employment Support Allowance has increased by more than 50 percent since the pandemic, with 80 percent of young people on the UC Health element currently citing mental health reasons or a neurodevelopmental condition among declared health conditions.
New analysis from Sir Charlie Mayfield’s Keep Britain Working review revealed a 76 percent increase in economically inactive 16 to 34-year-olds with mental health conditions since 2019. The review also found that being out of work at a young age can cost over £1 million in lost earnings over a lifetime.
Government response
Describing the situation, ministers said:
“The rising number of young people who are not in education, employment or training (NEET) is a crisis of opportunity that demands more action to give them the chance to learn or earn.”
They added:
“That’s why this investigation will look at how to get young people off benefits and into work, helping to cut the long-term costs of youth inactivity and make the social security system more sustainable.”
Secretary of State for Work and Pensions Pat McFadden said:
“The rising number of young people who are not in education, employment or training (NEET) is a crisis of opportunity that demands more action to give them the chance to learn or earn.
We cannot afford to lose a generation of young people to a life on benefits, with no work prospects and not enough hope.
I am determined to build a system that supports young people, not just in finding a job, but to build a better future – because when young people succeed, Britain succeeds.
If we get this right, the prize is huge – transforming lives and life chances, with the pent-up potential of the next generation firing our economy and building a better future for all.”
The Chancellor has said the Budget will tackle the cost of living and poor productivity, with a key focus on ensuring young people have the best possible opportunity to improve their life chances.
However, a former Worcestershire councillor and local businessman, who wished to remain anonymous, told this newspaper:
“But look at the state of the job market. There are no jobs… and Labour is strangling the very businesses that would be offering jobs to young people. I run a company, and I simply can’t afford to take on more staff under the pressures Labour’s policies are creating. My partner runs a pub and she has cut right back on hiring too.
“Then I hear reports today Labour want to offer migrants £100 a week on top of the existing £49.18 to move out of hotels. So people who are in the country illegally could end up receiving more than the £90.50 a week someone gets on Jobseeker’s Allowance. What incentive does that give our young people when this is the state of play?”
Scope of the review
The investigation will take what ministers describe as “a hard look at what’s working, what’s not and what needs to change.” It will build on government measures introduced over the past 16 months, including:
- £25 million to double the number of Youth Hubs, providing access to employment skills and wellbeing support in community settings
- £90 million for eight Youth Guarantee trailblazers across England
- Expanded Foundation Apprenticeships
- Improved access to mental health services through specialist staff in schools
- An independent review of curriculum, assessment and qualifications
- A job guarantee offering a paid work placement to eligible young people on Universal Credit for 18 months without working or learning
The Government’s Skills White Paper sets out targeted support, enhanced careers guidance and clearer progression routes to help prevent young people becoming NEET.
Ministers have highlighted that “far too many young people are missing out on opportunity before their working lives have even begun,” warning that rising claims for health and disability benefits risk “limiting their life chances and holding back their living standards.”
The review will complement the Timms Review but focus specifically on the link between youth mental health, economic inactivity and the benefits system.
The Right Honourable Alan Milburn said:
“We cannot stand by and let a generation of young people be consigned to a life without employment or prospects. It’s clear urgent action is needed.
That’s why with the help of a panel of expert advisors; I will aim to get to the bottom of why current efforts are not preventing young people from becoming trapped out of work and education.
The review will be uncompromising in exposing failures in employment support, education, skills, health and welfare and will produce far-reaching recommendations for change to enhance opportunities for young people to learn and earn.”
Interim findings will be shared with the Government in spring 2026, with the final report published in summer 2026. It will:
- analyse the reasons behind rising youth economic inactivity
- review current outcomes and identify barriers preventing engagement
- examine how young people interact with health, disability, skills and employment systems
- recommend reforms to improve opportunities
Milburn will work with experts in health and labour markets, employers and young people with lived experience of disabilities and mental health struggles.
The government say the work forms part of wider plans to maximise opportunities for young people, including the Youth Guarantee for 18 to 21-year-olds. In August 2025, the Prime Minister announced an £88 million investment package to expand youth services and after-school activities ahead of a National Youth Strategy.
The full Terms of Reference will be published on GOV.UK and placed in the Libraries of both Houses on 11 November 2025. The review will run independently of other ongoing work, including the Timms Review, and will not cover the Special Educational Needs and Disabilities (SEND) system.
Main Image: For illustration purposes only.
