An independent investigation will be launched to tackle the persistently high numbers of young people out of work, education and training, which ministers have warned is a "crisis of opportunity".
Former Health Secretary Alan Milburn to lead independent investigation into what's behind rise in youth inactivity
Investigation comes as one in eight young people are not in education, employment or training with mental health conditions a key driver
Findings will shape reforms that are already underway to skills, health, welfare, and employment support
Led by former Health Secretary Alan Milburn, the probe will examine why increasing numbers of young people are falling out of work or education before their careers have begun-with a particular focus on the impact of mental health conditions and disability.
It comes as nearly one million young people-approximately one in eight young people aged 16 to 24-are currently not in education, employment, or training (NEET).
Over a quarter of NEET young people now cite long-term sickness or disability as a barrier to participation, compared to just 12% in 2013/14. Further to this, the number of young people claiming UC health and Employment Support Allowance has increased by more than 50% in the last five years, with 80% of young people on the UC Health element currently citing mental health reasons or a neurodevelopmental condition among declared health conditions.
New analysis from Sir Charlie Mayfield's Keep Britain Working review also revealed a 76% increase in economically inactive 16-34-year-olds with mental health conditions since 2019. Additionally, the review found that being out of work at a young age can cost over £1 million in lost earnings over a lifetime.
The rising number of young people who are not in education, employment or training (NEET) is a crisis of opportunity that demands more action to give them the chance to learn or earn.
That's why this investigation will look at how to get young people off benefits and into work, helping to cut the long-term costs of youth inactivity and make the social security system more sustainable.
Secretary of State for Work and Pensions, Pat McFadden, said:
The rising number of young people who are not in education, employment or training (NEET) is a crisis of opportunity that demands more action to give them the chance to learn or earn.
We cannot afford to lose a generation of young people to a life on benefits, with no work prospects and not enough hope.
I am determined to build a system that supports young people, not just in finding a job, but to build a better future - because when young people succeed, Britain succeeds.
If we get this right, the prize is huge - transforming lives and life chances, with the pent-up potential of the next generation firing our economy and building a better future for all.
The Chancellor set out that the Budget will tackle the cost of living and poor productivity - a key part of this is ensuring that young people have the best possible opportunity to improve their life chances for a brighter future.
This investigation will take a hard look at what's working, what's not and what needs to change and will build on the Government's work over the past 16 months to expand opportunity for young people including:
£25 million to double the number of Youth Hubs - giving more young people access to employment skills and wellbeing support at football clubs, libraries and community centres.
£90 million for eight Youth Guarantee trailblazers across England - testing ways to tackle persistent challenges around coordination, engagement and accountability for young people's opportunities at a local level.
Expanded Foundation Apprenticeships - giving young people who are starting their careers a new route into good, skilled work in critical sectors.
Improving access to mental health services - by delivering access to specialist mental health professionals in schools.
An independent review of the curriculum, assessment and qualifications system in England - ensuring it is fit for purpose and meets the needs of children and young people.
A job guarantee for young people - offering a guaranteed paid work placement to eligible young people who have been on Universal Credit for 18 months without working or learning.
The Government's Skills White Paper sets out targeted support, enhanced careers guidance, and clearer progression routes to ensure young people remain engaged in education, training or employment-helping to prevent them from becoming NEET.
Far too many young people are missing out on opportunity before their working lives have even begun. The number of young people who are not in education, employment or training (NEET) remains persistently high, and there is a worrying rise in the number of young people claiming health and disability benefits which risks limiting their life chances and holding back their living standards.
The review will make practical recommendations to help young people with health conditions access work, training or education-ensuring they are supported to thrive, not sidelined. It will complement the Timms Review by focusing specifically on the link between youth mental health, economic inactivity and benefit system.
While the Timms Review is examining broader reforms to the disability benefits system, Milburn's work will focus on preventing young people from becoming trapped out of work, education or training-and on re-engaging those who have already become NEET.
The Right Honourable Alan Milburn said:
We cannot stand by and let a generation of young people be consigned to a life without employment or prospects. It's clear urgent action is needed.
That's why with the help of a panel of expert advisors; I will aim to get to the bottom of why current efforts are not preventing young people from becoming trapped out of work and education.
The review will be uncompromising in exposing failures in employment support, education, skills, health and welfare and will produce far-reaching recommendations for change to enhance opportunities for young people to learn and earn.
Interim findings will be shared with the Government in Spring 2026, with the final report published in Summer 2026. This will:
analyse the reasons behind rising youth economic inactivity
review current outcomes and identify the barriers that prevent engagement
examine how young people interact with health and disability welfare, skills and employment systems interact
recommend reforms to improve opportunities for young people.
By taking a holistic view of the welfare, health, skills and employment system, Alan Milburn will work with a panel of health, labour market experts and employers. He will also engage young people with lived experience of disabilities and mental health struggles to form practical recommendations.
The findings of the report will shape further government action to improve opportunities, support, and employment outcomes for young people with health conditions and disabilities.
It forms part of wider plans to maximise opportunities for young people alongside our Youth Guarantee to ensure every young person aged 18 to 21 has the chance to earn or learn. In August 2025, the Prime Minister announced an £88 million investment package to expand youth services and after-school activities, which is a step towards the forthcoming National Youth Strategy expected later this year.
