Alan Milburn has said ministers should reduce welfare payments and redirect some of the money towards employment support for young people.
His government-led review calculates that a record 1 million people aged 18 to 24 are not in education, employment or training, a group commonly described as NEET. Milburn said the scale of the problem amounted to more than a cyclical rise in youth unemployment, describing it instead as a “youth detachment” crisis.
A shift from benefits to support
Milburn said the welfare system was not working for young people and argued that spending should be redistributed towards support designed to help them enter work. He said reducing the benefits bill could be possible over the medium term, but only after upfront investment and wider opportunities had been provided.
He also said young people should have an obligation to take up opportunities made available to them. His final report has been delayed until after the budget, so the precise recommendations and funding arrangements have not yet been settled.
John Healey has signalled that more money could be spent on youth unemployment programmes in the short term, even if welfare savings took longer to appear. At last month’s Labour conference, Healey announced a £100m “local apprenticeship service”, describing it as a down payment on Milburn’s work.
Health and employment in the same plan
Milburn said the NEET crisis was also a health crisis, with ill health contributing to higher rates. His review is likely to propose bringing employment, health and benefits support closer together.
For young people with health needs, the expected recommendations include a prompt needs assessment, a personalised health plan and a broader “participation plan”. Milburn has also said he hopes a maximum waiting time for mental health services, particularly for young people, could be introduced.
He acknowledged that physical or mental health would mean work was not an option for some young people. But he said that, for the vast majority of young people with autism, ADHD, anxiety or depression, support should begin with what they could do and wanted to do, and with how the state could help them.
Rising concern about mental distress
Peter Fonagy’s independent review of mental health, ADHD and autism found that mental distress had risen significantly across all age groups in England since the 1990s, particularly among under-18s.
Fonagy’s review recommended providing help when it is needed rather than waiting for a diagnosis. It also warned that, if current trends continue, the proportion of young people with diagnosable mental disorders could rise from one in five to one in four, increasing their chances of becoming NEET.
The proposed approach would require substantial new investment. Sources cited in the fact sheet believe the transformation could cost hundreds of millions of pounds, although no specific funding level has been set out.
What happens next
The debate is now tied to decisions expected around John Healey’s first budget. Healey is also expected to use a tax raid on banks to help fund cost-of-living measures, including a proposed new energy support package.
The central question is whether early, coordinated support can reduce longer-term welfare costs without leaving young people without adequate help. Milburn’s argument is that savings should follow investment and opportunity, rather than replace them.
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