Labour’s big plan to tackle youth unemployment will increase the cost to the taxpayer before it makes major benefit savings, architect warns

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Labour’s big plan to tackle youth unemployment will increase the cost to the taxpayer before it makes major benefit savings, architect warns

Daily Mail · 57 minutes ago

The Labour government's plan to tackle Britain's youth unemployment crisis will require additional taxpayer investment before it delivers any benefit savings, according to Alan Milburn, the former Labour cabinet minister leading the review. Milburn said his recommendations amount to "a 10-year plan for youth participation" rather than a quick fix, meaning the initiative is unlikely to help balance the budget by 2030 as some had hoped. This matters because it undercuts expectations that welfare reform could quickly ease pressure on public finances, even as the number of young people not in education, employment or training (NEETs) remains a persistent problem.

An estimated 981,000 people aged 16-24 were classified as NEETs between April and June 2026, down slightly from over a million earlier in the year but still 30,000 higher than in 2025. Milburn, speaking during a visit to the Netherlands where the NEET rate is a quarter of Britain's, said matching that level within two or three years "just can't" happen, and floated letting regional mayors keep and reinvest welfare savings locally. Separately, analysis by the Children's Commissioner found that up to 42,000 16 and 17-year-olds enrolled in college are attending less than half the time and are not captured in official NEET figures, suggesting the true scale of disengagement may be far larger than reported.

  • Youth unemployment plan needs more funding before it saves money
  • Architect Alan Milburn calls it a 10-year project, not quick fix
  • Up to 42,000 college students hidden from official NEET statistics

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