Key facts
- Milburn will propose barring under-25s from ill-health supplements to standard unemployment benefits, Reuters reported.
- He will also propose moving under-25s to a more restricted version of the main disability benefit, per Reuters.
- Britain spends 8 billion pounds ($11 billion) a year on benefits for young people, Reuters reported.
- The 16-24 NEET share was 13% of the age group in the second quarter of 2026, Reuters reported.
- Milburn told the Times his report is unlikely to be pain-free and some people could get less support.
The UK government is preparing to receive a report and proposals next week from former minister Alan Milburn on youth unemployment, Reuters reported on November 13, 2026. Milburn, described by Reuters as a party ally of Prime Minister Andy Burnham, will propose barring under-25s from ill-health supplements to standard unemployment benefits and moving them to a more restricted version of the main disability benefit, according to the report.
Britain had 981,000 people aged 16 to 24 not in employment, education or training in the second quarter of 2026, or 13% of the age group, Reuters reported. The 15.6% youth unemployment rate compares with 3.4% for older workers, a wider gap than is typical in Europe, according to the report. Reuters said Britain spends 8 billion pounds ($11 billion) a year on benefits for young people and that Milburn's report is unlikely to reduce that quickly.
Milburn told the Times in an interview published on Thursday that his plans would not be easy or pain-free. "Candidly, it could mean that some people will get less financial support," he said. Reuters reported that cuts are likely to be unpopular among Labour lawmakers who previously thwarted welfare cuts under former prime minister Keir Starmer.
Michael Houlihan, UK head of employment charity Generation, told Reuters that around 70% of people on its courses found a job within 12 months, double the average for similar programs, and that courses should be tailored to employer needs. James Tuttiett, an executive at IT consultancy FDM Group, said artificial intelligence had reduced client demand for junior staff and that a higher minimum wage and increased employer social security payments had also limited hiring.
Nye Cominetti, an economist at the Resolution Foundation, told Reuters that UK benefits were not unusually generous compared with European countries with lower NEET rates, but that young people on health-related benefits faced fewer requirements to engage with back-to-work processes. Sonja Bekker, a professor of employment law at Utrecht University, said Dutch authorities visit young people at home to offer support, and that two-thirds of Dutch 16- to 17-year-olds have part-time jobs compared with less than a fifth in Britain.