Young people should have a legal guarantee of a job, training or employment support, according to Alan Milburn, the former Labour minister whose comprehensive review of youth unemployment will be unveiled on Tuesday. In remarks to be broadcast on Sunday, Milburn told the BBC that those who decline to accept the assistance offered could face the loss of their benefits.
According to BBC News, Milburn is calling for a fundamental reorientation of government spending, moving resources away from benefit payments for young people toward initiatives designed to help them enter the workforce.
Milburn contends that the government currently allocates 25 times as much funding to youth benefits as it does to employment support, and he believes this proportion should be rebalanced to a ratio of two to one. This shift would necessitate substantial reductions in benefit expenditure alongside considerable new investment in training, education and other support mechanisms.
"The pendulum's swung far too far from the one to the other - £25 to one, and we can take everything to £2 to one,"Milburn stated. He continued:
"To do that, we've got to invest, less in benefits, so we've got to be paying out less in benefits."
The former MP acknowledged that some young people would receive lower benefit payments under his proposals, arguing that the welfare system should prioritise moving people into employment rather than sustaining long-term dependency on state support. He noted that the government is currently spending £22 billion annually to support young people who are economically inactive, and that this expenditure must be redirected toward more productive ends.
Milburn has already indicated that people under 25 should no longer be eligible to claim certain health-related benefits, specifically the personal independence payment and the health element of Universal Credit.
What is the "opportunity guarantee"?
Milburn's other major proposal centres on what he terms an "opportunity guarantee" for young people. This would establish a legal obligation on the government to ensure that young people have access to a pathway into employment.
"It should be a guarantee for a young person. Because at the moment the only guarantee they've got is a very simple thing. To get a benefit. What sort of life is that?"he asked.
The structure of the "opportunity guarantee" would operate along similar lines to the existing legal duty placed on councils to provide homeless people with accommodation or advice, or to look after children in the care system. Milburn argues that previous employment schemes have been temporary in nature, and that a permanent legal entitlement is essential to address the persistent challenge of young people not engaged in education, employment or training.
According to parliamentary records, the government's existing Youth Guarantee is supported by an additional £2.5 billion through 2029 and aims to help almost one million young people by creating up to 500,000 opportunities to earn or learn. The government has also indicated that the Youth Guarantee is being extended to eligible young disabled people and those with long-term health conditions.
How has the government responded?
Prime Minister Andy Burnham has characterised Milburn's forthcoming report as a "watershed moment" in how the nation approaches supporting young people and helping them into work, though he has not committed to accepting all of its recommendations. When asked directly whether he would endorse the politically contentious report in its entirety, Burnham declined to offer that assurance.
Speaking to journalists during a visit to Dublin on Thursday, Burnham said:
"We will have to wait until the report is published. It's a wide-ranging report, and obviously we'll set out our response next week. But I think it's really important to see the report as quite a watershed moment I think in terms of how we think about supporting young people and supporting young people into work."
Burnham also stressed that funding the reforms would not require "more money" but rather "spending differently" within existing government budgets, though he acknowledged the substantial upfront investment the proposals are expected to demand. The government indicated it would set out its response to the report the week after publication.
What do opposition parties say?
Conservative Party leader Kemi Badenoch has previously argued that the government should not devote "lots of time" to employment schemes, which she contends would ultimately prove unsuccessful. Both the Conservative Party and Reform UK have advocated for significant welfare reductions, partly to fund increased defence spending.
Reform's economy spokesman Robert Jenrick stated:
"This review is pointless unless we get action from Burnham straight away. It cannot be right that this continues for another 10 years before the youth benefits bill comes down."
The Liberal Democrats have proposed a different approach, calling for a 100-hour work experience guarantee and the assignment of a careers coach to every young person. They argue this would equip young people with optimal skills before they complete their schooling.
The Green Party has cautioned against "demonising" young and disabled people and has urged the government to tackle the "structural inequalities stacked against them".
What is the scale of youth inactivity?
Almost one million young people in the United Kingdom are not in employment, education or training—a category known as Neet—according to the most recent data from the Office for National Statistics. This persistent challenge has prompted the government to establish a £60 million fund for organisations to test innovative approaches to employment support, part of a broader £3.5 billion employment-support package.
What happens next?
The full proposals will be published on Tuesday, accompanied by a statement in Parliament and draft legislation expected in early 2027. The government is anticipated to broadly welcome the recommendations, though the extent to which it will adopt them remains to be seen following Burnham's cautious response.
