Alan Milburn Labels Youth Benefit Spending 'Shameful' as 25:1 Ratio Exposed
Alan Milburn says the UK spends 25 times more on youth benefits than on employment support, with nearly a million NEETs, urging welfare reform.
TL;DR
– The UK spends £25 on benefits for each £1 spent on employment support for 16‑24‑year‑olds, while 957,000 young people remain outside education, work or training.
Context Former Labour health secretary Alan Milburn, who led a government‑commissioned review of youth inactivity, told the BBC the current funding balance is "shameful". His interview with *Sunday with Laura Kuenssberg* comes as the first part of the report is due for release this week.
Key Facts - Government outlays on core employment programmes for 16‑24‑year‑olds amount to just 1% of the spending on key benefits such as Universal Credit, Jobseeker’s Allowance, Personal Independence Payment and Disability Living Allowance. That translates to a £25‑to‑£1 ratio. - From October to December 2025, 957,000 young people were classified as NEET – not in education, employment or training – representing 12.8% of the age group, according to the Office for National Statistics. - More than half of the NEET cohort were economically inactive, meaning they were not actively seeking work. - Milburn argues the failure spans the welfare system, schools, skills provision and health services, and calls for a "system reset" that includes welfare reform.
What It Means The disparity suggests policy priorities favour cash benefits over active labour‑market interventions. Milburn’s forthcoming recommendations will likely push Labour to champion welfare changes framed as essential for moving young people into work. If the government reallocates resources toward employment programmes, the £25‑to‑£1 gap could narrow, potentially reducing the NEET rate. Watch for the full report later this week and Labour’s policy response in the run‑up to the next election.
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