Milburn Review Finds UK Spends 25 Times More on Youth Benefits Than Employment Support
Former minister Alan Milburn has criticised the government’s spending priorities, revealing that the state spends twenty-five times more on benefits for young people than on initiatives to support them into work. This stark disparity, which Milburn describes as “shameful,” emerges as nearly one million young people in the UK are currently not in employment, education, or training (NEET).
Milburn, who chaired a government-commissioned review into youth inactivity, stated that a complete “system reset” is urgently required. His initial report, set for publication this week, attributes the problem to a “widespread failure” across state institutions, including the welfare, school, skills, and health systems.
Spending Discrepancy Undermines Youth Prospects
Milburn's calculations are based on expenditure for 16-24 year olds participating in core employment programmes funded by the Department for Work and Pensions and Jobcentre Plus, contrasted with spending on key benefits such as Universal Credit, Job Seekers' Allowance, Personal Independence Payment (PIP), and Disability Living Allowance. He highlighted that “for every £25 that we spend keeping young people on benefits, we spend only a pound helping them get into work through employment support.”
The Office for National Statistics reported that between October and December 2025, 957,000 young people in the UK were NEET, representing 12.8% of the age group. Over half of these individuals were deemed economically inactive, not actively seeking employment.
Calls for Welfare Reform and Structural Changes
Milburn, a former Labour health secretary, stressed the necessity of welfare system reform, a position that some within the Labour Party have viewed with apprehension. He argued that “welfare reform is absolutely essential and needs to be done,” but must occur within the context of broader reforms to state institutions.
The report will also address challenges faced by young people entering the workforce, acknowledging a rise in mental health issues but contending that such diagnoses should not preclude expectations of employment. Milburn also pointed to a decline in entry-level jobs over the past twenty-five years, making initial steps on the career ladder increasingly difficult for young people.
James Reed, chief executive of the Reed Group recruitment agency, corroborated the difficulties in the labour market, noting a “relentless decline” in job vacancies. He also called for Chancellor Rachel Reeves to abolish the 1.2% increase in employer National Insurance contributions, arguing it makes hiring “more expensive and more difficult for employers.”
