Government Spends 25 Times More on Youth Benefits Than Employment Programmes

Former Labour health secretary Alan Milburn has criticised the UK government's spending priorities, revealing that it invests significantly more in benefits for young people than in programmes designed to help them secure work. Milburn, commissioned by the government to examine youth inactivity, detailed that for every £25 spent on benefits, only £1 is allocated to employment support for 16-24 year olds.

Alarming Figures on Youth Inactivity

Milburn's calculations, based on Department for Work and Pensions and Jobcentre Plus figures, highlight a stark imbalance. The latest Office for National Statistics data from October to December 2025 indicated 957,000 young people in the UK were NEET, representing 12.8% of that age group. Over half of these individuals were classified as economically inactive, not actively seeking employment.

Milburn's initial report, due for publication this week, attributes this pervasive issue to systemic failures across state institutions. "This is a failure of the welfare system, but it's a failure, I'm sorry, of the school system, the skills system, the health system," Milburn stated, arguing that the current approach funnels young people into a "world of benefits with incalculable costs for their life chances."

Call for a Systemic Overhaul

While his full recommendations are forthcoming, Milburn emphasised the urgent need for a "system reset," including reform of the benefits system. He urged the Labour Party to embrace welfare reform, framing it as essential for providing purpose, income, and meaning through work. Milburn also acknowledged the increasing prevalence of mental health issues among young people but maintained that such diagnoses should not preclude expectations of employment. He noted the decline in entry-level jobs over the past 25 years, eliminating crucial first steps on the career ladder for many young individuals.