Milburn Report Warns of UK Lost Generation of Youth

A government-commissioned review led by Alan Milburn warns that the United Kingdom faces a lost generation of young people. According to the interim report released on May 28, 2026, the number of individuals aged 16 to 24 not in education, employment, or training (NEET) reached 1.01 million between January and March 2026, the highest level since 2013. Milburn projects this figure could rise to 1.25 million by 2031, estimating the annual economic cost at £125 billion.

Milburn attributes the crisis to a whole-system failure, citing a sharp decline in entry-level roles—particularly in hospitality—the rise of artificial intelligence, and a welfare system that spends £25 on benefits for every £1 spent on employment support. He describes the current state as a failure of a system stuck in the past rather than a lack of will among youth.

In response, Prime Minister Keir Starmer described the findings as sobering and pledged that the government will not allow a lost generation. Work and Pensions Secretary Pat McFadden announced a youth employment initiative to create 300,000 work experience and training placements over three years as part of a £2.5 billion support package. Additional measures include a £3,000 Youth Jobs Grant and 50,000 new apprenticeships.

Opposition figures and business leaders offered mixed reactions. Shadow Secretary Helen Whately accused the government of playing politics while Labour's tax and wage policies fueled the crisis. Business leaders from the Federation of Small Businesses and companies like Next argued that payroll tax increases and minimum wage hikes have squeezed entry-level hiring. Final recommendations for fundamental reform are expected in autumn 2026.