Britain could see hundreds of thousands more young people not in employment, education or training (Neet) by the early 2030s without urgent government intervention, a landmark report has warned.
Over 1 million young people are currently estimated to be Neet in the UK, which could rise to 1.25 million if steps are not taken, Alan Milburn has said.
The former Labour health secretary is leading a government-commissioned review into youth economic inactivity, expected to call for steps to overhaul schools, the health service, welfare system and jobs market in his upcoming interim report.
He will say: “This is not a failure of young people. It is a failure of a system stuck in the past. Whether it is education or health or welfare, that system fails to enable their participation in the labour market.
“Instead, all too often it ends up putting young people on a path to a life not in jobs but on benefits. This should be the priority for the government. It should be the priority for all of us.”
The issue is far from a new one, with the percentage of people aged 18-24 with Neet status peaking at nearly 20 per cent in late 2010, almost 5 per cent higher than current levels.
But this rate has continued to rise steadily following the Covid pandemic, with experts warning that steps must be taken now to reverse the current trajectory.
What does Neet mean?
A young person is considered Neet if they are:
- unemployed, looking for work; or
- economically inactive, not actively looking for work, and not waiting to start a job or caring for family
Those in formal education, undertaking an apprenticeship or in part-time work are not considered to be Neet.
How many Neets are there?
There are now 1.01 million young people aged 16-24 with Neet status in the UK, according to data from the Office for National Statistics published on Thursday. This is equivalent to 13.5 per cent of all people aged 16 to 24.
Most of these fall into the economically inactive bracket, at 613,000.
The latest figure marked a rise from 957,000 recorded for October to December 2025, an increase of 5.7 per cent over a quarter.
The largest quarterly Neets total was 1.24 million, recorded in July to September 2011, after the 2008 financial crisis – representing 16.9 per cent of all young people at the time.
What is Labour doing about Neets?
The government’s flagship policy to tackle youth economic inactivity is the ‘youth guarantee’, announced in September last year.
Backed by £820 million over the three years, the plan aims to provide anyone aged 18 to 21 in England with access to an apprenticeship, training, education opportunities or help to find a job.
It will also guarantee anyone who has been Neet for more than 18 months a six-month paid work placement, helping them prepare for a full-time job.
Those who refuse risk being stripped of their benefit entitlement.
Launching his interim report on Thursday, Mr Milburn is expected to say: “Six in ten have never had a job. Twenty years ago, that figure was closer to four in ten. Detachment is no longer temporary. For too many young people it is becoming permanent. We are at risk of a lost generation.”
Responding, work and pensions secretary Pat McFadden said: “We are already taking action by bringing forward the biggest youth employment reforms in a generation to create 500,000 opportunities for young people, including a Youth Jobs Grant for businesses starting next month, more apprenticeships, and subsidised employment to help young people get a foot on the ladder.”