The interim Milburn Review has laid bare the scale of Britain’s youth employment crisis.[1] With nearly one million young people Not in Education, Employment or Training (NEET)[2] and an estimated cumulative annual cost of £125 billion to the economy, the report is a significant moment and a signal for businesses, employers and policymakers about what comes next.
Introduction
Former Labour Health Secretary Alan Milburn has published his interim review into young people and work. The report finds that nearly one million young people in England are currently not in education, employment or training, and the structural conditions that created this crisis are deepening, not improving. Six in ten NEETs have never held a job, compared to four in ten in 2005. Entry-level positions have declined sharply, with mid and lower-skilled jobs falling by approximately 1.6 million over the past two decades. For businesses, employers and those working in employment, skills and health policy, the Milburn Review is a warning about a labour market that is failing a generation and a possible signal that further policy intervention is coming.
Key Takeaways
- The annual cost of youth NEET is estimated at £125 billion, driven primarily by lost economic potential rather than direct benefit spending.
- Health is now a defining driver of NEET status. The proportion citing a work-limiting health condition has risen by 70 per cent over the past decade, with mental health conditions affecting more than four in ten.
- Structural weaknesses in the labour market are now also leaving qualified young people behind. Nearly 30 per cent of NEETs now hold good GCSEs, 21 per cent have a Level 3 qualification, and 15 per cent hold a degree.
- Apprenticeship starts among young people have fallen by 35 per cent since 2017, narrowing one of the most effective routes into work.
- The UK now has the second-highest youth NEET rate in the developed world, behind only Romania, a position Milburn describes as both shameful and reversible.
What the Review Found: A Crisis With Deep Structural Roots
The Milburn Review is unambiguous in laying out that this is not a short-term cyclical problem but a structural one. The labour market is simply not absorbing young people at the rate it once did. A good example can be seen in the hospitality sector, which has historically been one of the most accessible entry points for young workers, and yet vacancies have halved in just four years. Milburn has been clear that there is no single solution, telling the BBC that a ‘round of ammunition’ is needed rather than a ‘magic silver bullet’.[3] A second report setting out recommendations is expected later in 2026.
Why Health Is Now Central to the NEET Challenge
A significant finding in the review is the extent to which health and mental health have become a driver of NEET status. The proportion of disabled NEETs whose primary condition is mental health has almost doubled to more than four in ten. Of those who became NEET for health reasons between 2017 and 2019, nearly eight in ten remained NEET more than two years later, suggesting that without targeted intervention, health-related worklessness has become entrenched. The Society of Occupational Medicine has responded to the review, welcoming it as a ‘vital wake-up call’ while warning that efforts to reduce NEET numbers will falter unless employers are equipped with the right skills and support around work and health, including proper use of occupational health professionals.[4]
What This Means for Employers and Businesses
The Milburn Review seems likely to culminate in the state placing significant new expectations on employers. Businesses operating in sectors that have historically relied on entry-level and younger workers could expect renewed Government focus on hiring practices, apprenticeship delivery, occupational health provision and workplace mental health support.
Conclusion
The Milburn Review confirms what many in the employment and skills sector have long known: Britain’s youth employment crisis is structural, worsening and expensive. With a second report and likely legislative or funding responses to follow, the coming months will be an important window for employers, sector bodies and businesses to engage with government and shape the policy response.
Speak to Brevia
If your organisation needs to understand the implications or engage with the policy process ahead of the second report, Brevia’s team is ready to help.
Discover how Brevia can help you and your organisation by contacting the Brevia Team on 020 7091 1650 or contact@brevia.co.uk
BREVIA CONSULTING PROVIDES STRAIGHTFORWARD POLITICAL ADVICE AND SUPPORT TO BUSINESSES AND CHARITIES.
[1] Gov UK, Young people and work: interim report, 28 May 2026, link
[2] All figures are taken from the report, unless otherwise specified.
[3] BBC News, PM calls Neet report ‘sobering’ as number of young people out of work and education hits 12-year high, 28 May 2026, link
[4] Workplace Journal, Most young NEETs face health barriers, not lack of ambition, report finds, 28 May 2026, link
