A new report predicts that the UK is on course to have 1.25 million young people out of work and education within five years.
Alan Milburn’s interim report on the causes of persistently high unemployment and youth inactivity - which was commissioned by the government last year - was published today. It came as new figures from the ONS showed that in January-March 2026, there were more than 1 million people aged 16-24 neither earning nor learning in the UK.
This figure accounts for 13.5% of young people – or over 1 in 8 - and is the first time the number has topped 1 million since 2013.
Among Mr Milburn's comments, he said there was no shortage of effort from young people - "the shortage is of opportunity and of support".
He also said that after talking with employers, “the biggest complaint people have is about work readiness”.
Iona Ledwidge, CEO of the youth employment charity Spear, said: “Alan Milburn has rightly highlighted that the UK currently spends 25 times more on benefits for young people than it spends on supporting them into work. We believe there is a gulf between where many jobless young people are and where employers need them to be before they are ready for work. That is a gap that we bridge through the Spear Programme.
“We have estimated that in 2025, Spear saved taxpayers £13 million through getting young people into work or education who would otherwise still be NEET.
“The new figures for young people not earning or learning represent a mountain of untapped talent and are a clear signal that the government needs to speed up its work to support young people into work or education.
“More than half of these young people have never had a job*. Joblessness is a bottomless pit – the further you go into it, the harder it is to climb out. But we’ve seen thousands climb out and thrive. Sustained, tailored coaching in the right skills is the ladder.
“Mental health issues are common among this generation, who were affected by the pandemic. But this needn’t be a barrier to employment. Among our trainees, 67% of those who have a mental health issue are earning or learning a year after they finish Spear.
"The government's hiring incentives, such as the Jobs Guarantee or Youth Jobs Grant, are welcome but job placements for young people facing multiple barriers aren’t going to cut it. These are young people who struggle to leave the house or make eye contact."
Spear believes the government should commit to funding work-readiness training for all NEET young people on Universal Credit. Such support should be given by a skilled, trusted adult, and should be tailored and evidence-based, to ensure it doesn’t waste time and money.
We anticipate that such training would pay for itself, as well as delivering wider benefits for society as well as the young people who move into work or study.
The UK could add £69 billion to the economy if we reduced the number of NEET young people to levels in the Netherlands, according to one estimate.**
The Spear Programme is among the best-evidenced interventions that work to get young people earning or learning. Those aged 16-24 can get free, tailored coaching at one of 18 Spear Centres across England and Wales. Over 70% of those who finish Spear are in work or education a year later.
In 2025 alone the Spear Programme saved the UK taxpayer £13 million a year. This saving is based on young people getting into work or education who wouldn’t have done so without Spear. The figure reflects, for example, the state benefits they won’t need to claim, and the tax they’ll contribute over a lifetime.
Spear trainee Ruqayyah dropped out of her sixth form. She says: “I had undiagnosed autism, and I couldn't cope with the transition...For the entirety of 2023, I didn't leave my house. I was very isolated and very alone.
“But then my social worker, recommended me to do the Spear Programme...Spear pushes you out of your comfort zone. So even when they told me I had to do something, I would think it would be the worst thing ever. I'd do it and I would surprise myself and think, ‘Oh, I'm actually good at this.’ So it really built up my self-esteem.”
Ruqayyah went on to get a job as a carer. She was then accepted onto a social sciences training course and is going to university in September.
*The Learning and Work Institute says that over half of NEET young people have never had a paid job.
**The Youth Employment Group estimated that reducing the number of NEET young people to the same levels as the Netherlands could generate £69 billion in GDP.