2.3.1 – The structure, role, and powers of thr Executive
Last week the first stage of an important report was published. The report is authored by Alan Milburn – a former Cabinet minister under Tony Blair – and focuses on the issue of NEETs: young people not in education, employment or training.
In November 2025, Keir Starmer asked Milburn to investigate the issue. His initial report, published last week, made for difficult reading. It said:
- Over 1 million young people in the UK – around 1 in 8 – are not in employment, education or training. Britain’s position is also getting relatively worse. A decade ago the rate was close to the EU average; Britain now has the second worst rate in Europe, with only Romania faring worse.
- The problem is worse in some parts of the country. Milburn found that where someone lives has a significant impact. For instance, London has a lower NEET figure than more remote parts of the country.
- Health plays a part in the numbers, with evidence suggesting that young people with mental health conditions are much more likely to be NEET. He also said the culture in the NHS needs to change — away from telling people they are “unfit to work” and towards one where they are encouraged back into work.
- The social security system contributes to the problem. Milburn alluded to a dependency culture being created, noting that of those who first claim a benefit aged 16–25, almost half are still NEET a decade later.
- Entry-level jobs are harder to get. Milburn said that AI is already reducing the number of entry-level jobs available to young people. In addition, companies are less likely to take on younger staff than they used to be.
Importantly, Milburn also tackled a common perception pushed about young people: that a media image has been created of a generation with no interest in work. Milburn disputed this. He said there is no doubt that young people are different from those of the past – but that this is a product of the changed world they have grown up in, not laziness.
The cost of the situation is huge. Firstly, there is the personal cost to the young people involved. A long period out of work early in life leaves lasting scars: those who have never held a job by the age of 24 face an estimated lifetime earnings loss of around £300,000, with some losing more than £1 million over a working life. Beyond the financial hit, Milburn pointed to the toll on mental health, confidence and life chances – describing young people being channelled into a life on benefits as carrying “incalculable costs for their life chances.” However, there is also a broader cost to the economy. It is estimated that the annual cost to the UK is around £125 billion. This figure is not the benefits bill (£8.1 billion) but the wider cost, inclusive of lost tax revenue, NHS spending and lost economic productivity.
Keir Starmer commissioning the report is one thing. How the government reacts to it is, of course, another. It is clear that this has been a generational failure – with multiple governments responsible. A large part of this comes down to voting behaviour. At the 2024 General Election, according to Ipsos, turnout among 18- to 24-year-olds was 37%. In comparison, turnout among those aged 65 and over was 73% – a gap of 36 percentage points. Political parties inevitably factor this into their policy portfolio. The most notable example of this is the “triple lock” on pensions. This means that the state pension goes up every April by whichever is the highest of three figures: CPI inflation from the previous September, average earnings growth from May to July, or 2.5%. Because it always takes the largest of the three, the pension can never rise by less than 2.5%, can never fall behind prices, and can never fall behind wages. This is exceptionally expensive for the UK economy. However, the main political parties are committed to it precisely because older voters turn out and can decide elections in a way that, at present, young people do not.
Milburn’s report will make difficult reading for the government. It is the next stage of the report that is even more important, though. Milburn will look to set out solutions to the NEET problem. It will then be incumbent on the government to set out a coherent strategy to tackle it.
Alan Milburn was the Labour MP for Darlington from 1992 to 2010. He was a close ally of Tony Blair and served as Health Secretary between 1999 and 2003. Since leaving Parliament he has held various posts linked to the topic of social mobility, as well serving as Chancellor of Lancaster University. Milburn is widely regarded as epitomising the values of New Labour and political centrism, and his words still carry a lot of weight with many within Labour and wider political circles.