A major government-commissioned review into youth inactivity in the UK has found that significantly more public money is spent on welfare benefits for young people than on programmes designed to help them into work.

Former Labour minister Alan Milburn, who is leading the review, told the BBC that for every £25 spent on keeping young people on benefits, only £1 is invested in employment support aimed at helping them secure work.He described this disparity as “shameful” and called for a comprehensive “system reset”.The findings come amid concern about nearly one million young people aged 16 to 24 who are not in education, employment or training (NEET).According to the Office for National Statistics, around 957,000 young people fell into this category in late 2025, representing 12.8% of that age group.More than half are economically inactive and not actively seeking work.

Milburn argues that the issue reflects a broader failure across multiple public systems, including education, skills training, health services and welfare provision.

He claims that instead of supporting young people into employment or training, the current system too often funnels them into long-term dependency on benefits, with damaging consequences for their future prospects.

The review also highlights wider structural challenges, including a rise in mental health diagnoses among young people and a decline in entry-level jobs, which Milburn says have reduced opportunities for those starting their careers.He also points to a long-term trend of falling youth employment over the past 25 years.

While acknowledging the complexity of the issue, Milburn argues that welfare reform is essential and must be part of a broader overhaul of state institutions.

His full recommendations are expected later this year, but the initial findings already suggest significant changes will be proposed to how the UK supports young people into work.