Young people out of work or training costing UK £125bn as report warns of 'perfect storm'

The number of young people not in work, education, or training in the UK has surpassed one million, with a government-commissioned review warning the trend could cost the economy £125bn a year^[1][2].

Official figures show 1,012,000 individuals aged 16 to 24 were classified as 'Neet' (Not in Employment, Education, or Training) in the first quarter of 2026, representing 13.5% of all young people in the country^[1][2]. The review, authored by former minister Alan Milburn, projects this figure could rise to 1.25 million by 2031 without intervention^[1]. The report attributes the crisis to a 'perfect storm' of challenges, including a sharp decline in entry-level opportunities^[1][2]. It notes the number of mid- and lower-skilled jobs in the economy has fallen by around 1.6 million over the past two decades^[2]. Concurrently, the number of young people classified as 'economically inactive'—not looking or available for work—rose to about 613,000^[2]. Milburn warned the education, health, and welfare systems are 'no longer fit for purpose' in preparing youth for adult life, risking a 'lost generation'^[1]. In response, Work and Pensions Secretary Pat McFadden acknowledged the report laid 'bare the scale of the challenge'^[1].