A once in a generation chance

Fixing the UK youth unemployment crisis will take a sharp rise in investment in employment support rather than cuts to benefits, according to TUC general secretary Paul Nowak. Speaking before an official report due the following week, he said the government has a "once in a generation chance" to secure young people's futures.

Nowak argued that spending more on job support, education and training would pay for itself through economic gains that ease pressure on the welfare state, warning that "the benefits bill will go up if young people are not supported". He also called on ministers to invest in social infrastructure alongside physical infrastructure, and said he does not believe the government will repeat benefit cuts that harm vulnerable people without helping them into work.

The Milburn review and its delay

The report is by Alan Milburn, the former Labour health secretary. It is expected to recommend welfare cuts to fund job support for almost a million young people who are not in education, employment or training - the so-called Neet group.

Its publication was delayed until after the budget amid fears that the welfare cut recommendations would clash with chancellor John Healey's tax and spending plans. The prime minister has been cautious, wary of a repeat of the welfare rebellion that forced Keir Starmer and Rachel Reeves into a U-turn on planned disability benefit cuts within a year of taking power.

Burnham's response and cross-party concern

Andy Burnham described the rise in Neet young people as an "economic catastrophe and a moral failure". He said tougher benefits rules and more help for young people will form part of his government's response to the Milburn report.

Concern is not confined to the left. Polling by Focaldata for the Jobs Foundation, an employment charity co-founded by the Conservative peer Matthew Elliott, found the youth jobs crisis ranks second only to the cost of living as a national problem - above NHS waiting lists, housing, crime and immigration.

Business pledges and government spending

A national campaign against worklessness backed by the Jobs Foundation launches on Monday. Employers including Amazon, Pret a Manger, NatWest, Marks & Spencer and Shell have pledged to support young people overlooked for work.

The government points to commitments already in place:

• •A pledge of £2.5bn in youth employment support, delivering almost 500,000 opportunities to earn and learn, according to a government spokesperson.
• •Engagement with business to create up to 200,000 jobs for young people, including with retail and hospitality brands.

Further reform will follow the Milburn review, which the government says will be published in the autumn.