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09 November 2025

UK Launches Major Review Into Youth Inactivity Crisis

Nearly one million young people are out of work or study as officials probe rising mental health claims and long-term barriers to employment.

On November 9, 2025, the UK government took a decisive step to address what officials have described as a “crisis of opportunity”: the rising number of young people who are not in education, employment, or training—commonly known as “Neets.” With nearly one million people aged 16 to 24 now falling into this category, the government has launched an independent review, appointing former Labour Health Secretary Alan Milburn to lead the inquiry. The review aims not only to uncover the root causes of this troubling trend but also to recommend actionable solutions for getting young people back on track.

According to the Department for Work and Pensions, as reported by BBC and The Independent, the number of Neets has been steadily climbing in recent years. As of June 2025, the official figure stood at 948,000, representing one in eight young people—a level not seen in over a decade. Work and Pensions Secretary Pat McFadden has been vocal about the urgency of the situation, calling it a “crisis of opportunity that demands more action to give them the chance to learn or earn.” He added, “We cannot afford to lose a generation of young people to a life on benefits, with no work prospects and not enough hope.”

The government’s decision to launch the review comes amid mounting concerns over both the social and economic costs of youth inactivity. Prime Minister Sir Keir Starmer has weighed in as well, describing the broader benefits system as “unsustainable and unfair.” However, any attempt to overhaul welfare has proven politically sensitive, with Labour backbenchers expressing reservations about the direction of reform. The stakes are high: the review’s conclusions, set to be published in the summer of 2026, could shape the future of youth policy in the UK for years to come.

What’s fueling this surge in youth inactivity? The data paints a complex picture. A quarter of young people who are not working or studying cite long-term sickness or disability as a major barrier—a significant increase from 12% in 2013-2014, according to The Independent. Even more striking is the rise in benefit claims: the number of young people claiming Universal Credit Health and Employment Support Allowance has jumped by more than 50% over the past five years. Of those receiving the health element of Universal Credit, around 80% point to mental health reasons or neurodevelopmental conditions as the basis for their claims.

Pat McFadden, in comments first reported by The Sunday Times, addressed the sensitive issue of mental health diagnoses among young people. He was careful not to attribute the increase solely to over-diagnosis, stating, “I don’t want to play amateur doctor. I want to approach this with sensitivity.” He continued, “The question I’m asking is, given the higher reported number of these conditions among young people, what is the best policy response? I don’t believe there should be an automatic link between diagnosis and benefits. I think at that point we should ask a different question, which is, if you’ve had a diagnosis, what can we do to help you?”

McFadden’s remarks underscore a broader challenge: how to support young people facing genuine health obstacles without creating a system that inadvertently discourages participation in work or education. He also highlighted the role of work as an antidote to many of the challenges young people face, particularly in communities grappling with deep-seated inequalities. “There is a lot of anger and frustration out there right now, and there are plenty of politicians who will go around and find something that makes people angry and pour petrol on it,” McFadden observed. “Work is the best antidote to many of the conditions that we’re seeing.”

Alan Milburn, the man tasked with leading the review, has promised an “uncompromising” investigation. “We cannot stand by and let a generation of young people be consigned to a life without employment or prospects,” he said, as quoted by BBC. “It’s clear urgent action is needed.” Milburn’s mandate is broad: the review will examine failures in employment support, education, skills training, health, and welfare. The goal is not just to identify shortcomings but to propose concrete ways to reduce the long-term costs of youth inactivity and help young people transition off benefits and into meaningful work.

The review’s findings, which are due next summer, are expected to shine a light on why so many young people are struggling to find their footing. Some experts suggest that the fallout from the COVID-19 pandemic, changes in the labor market, and the growing prevalence of mental health challenges have all played a role. Others point to structural issues in education and training systems that may not be adequately preparing young people for the demands of the modern workforce.

Whatever the causes, the numbers are hard to ignore. The government’s own data suggests that the tide is not turning anytime soon. McFadden warned that the figure of young people not in work or education is “set to exceed one million in the coming weeks,” marking the highest levels in more than ten years. This upward trajectory has spurred calls for immediate and innovative solutions.

But the road ahead is fraught with political and practical challenges. Efforts to reform welfare and benefits systems often spark heated debate, with critics warning that changes could punish the most vulnerable. Advocates for young people with disabilities or mental health conditions argue that any reforms must be accompanied by robust support services, not just tighter eligibility rules. Meanwhile, business leaders and educators are urging policymakers to invest in skills training, apprenticeships, and pathways that connect young people to the jobs of the future.

As the review gets underway, all eyes will be on Alan Milburn and his team to deliver not just a diagnosis, but a prescription for change. The stakes are high—not just for the nearly one million young people currently on the sidelines, but for the country’s economic and social fabric as a whole. As McFadden put it, “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.”

With the government’s inquiry now in full swing, the UK faces a pivotal moment. The coming months will determine whether urgent action can turn the tide for a generation at risk of being left behind.