The Tony Blair Institute has proposed ending cash benefits for some under-25s with anxiety or depression that do not limit their ability to work, redirecting support towards mental-health treatment, training and job placements. It says the welfare system is contributing to long-term inactivity among young people not in education, employment or training, although disability campaigners warn that removing benefits could increase poverty.

The number of young people classified as Neet remains close to one million, falling from 1.01 million to 981,000 between April and June. The report also urges the Government to pause plans to equalise minimum-wage rates for younger and older workers, arguing that employing an 18-year-old now costs 40 per cent more than in 2015; health-benefit spending is forecast to reach £77.1 billion in 2025/26, compared with £36 billion in 2019/20.