Young People and Work: Milburn Interim Report

Tuesday 3rd November 2026 Westminster Hall

09:30

[Andrew Ranger (Wrexham) (Lab)]

I beg to move,

That this House has considered the findings of the Milburn Review into young people and work: interim report, published on 28 May 2026.

It is a pleasure to serve under your chairship, Ms McVey. I thank the Backbench Business Committee for allowing me to bring this debate forward.

Each generation is judged on the question of whether we leave the next one better off. Will they have greater opportunity, more security and the same hope that we had? Around 1 million young people across the United Kingdom are NEETs: not in education, employment or training. That is one in eight. Of those, six in 10 have never had a job—and the interim Milburn review warns that, without action, that number will be one in six within five years. If we do not act with the magnitude, imagination and substance that this moment demands, we risk failing on that generational question.

How did we get here—or, to put it better, how did we allow our young people to end up in this position? The systems set up in the shadow of the second world war to support and enable a good life for everyone in this country regardless of postcode or wealth are at the very core of meeting the challenge, but we must ask whether they are working as they should. Why does our welfare system spend £25 on benefits for young people for every £1 it spends on helping them into work? Why are young people who could work with the right support being signed off and left there with no route back? Why do 67% of NEET young people tell us that the curriculum does not prepare them for work or life?

The stark reality is that the institutional infrastructure that accompanies the system has been hollowed out, without anything to take its place. That is the youth clubs and community spaces where young people learn to work together, build relationships and find their place in the world; or the Saturday jobs, where they develop vital soft skills, learn the value of responsibility and discover what it means to be part of a team.

[Mr Toby Perkins (Chesterfield) (Lab)]

Supported internships are an incredibly useful way of supporting young people who have an education, health and care plan along the pathway to work. They cost more and require significant investment, but are very cheap in comparison to seeing that young person living a life on benefits. Does my hon. Friend agree that we should be doing all we can to provide more supported internships, because that investment will make a long-term difference to getting people out of unemployment and into work?

[Andrew Ranger]

Yes, I totally agree; I will come on to that point later in my speech.

Too often, politics runs on short-term decisions, whatever the party or the Government. On this issue, short-termism will not do. The young people affected will not accept it, and nor should we. Picture a young person in my constituency of Wrexham—let us call him James. He is talented, but school never worked for him. He moves on to further education, but it is the wrong fit and does not work out. Before long, he is signed off and written off.

This all comes back to a moral mission that touches every postcode. The problem cannot be solved by the state alone; it needs businesses, third sector organisations and community groups—every one of us. It takes a village to raise a child. This is going to take a nation.

Six years ago, we asked young people to carry an extraordinary burden to protect older and vulnerable people from a pandemic. They did it without question. They sacrificed experiences, milestones and opportunities that the rest of us took for granted. That sacrifice is not without its aftershocks, many of which we have seen come to prominence in the last few years, particularly in health and educational outcomes.

[Gill German (Clwyd North) (Lab)]

I thank my hon. Friend for all his work in this area. I visited my local employability service, Working Denbighshire, last week. It runs an amazing programme called Barod, which means “ready” in Welsh. It does pre-employability work—working on confidence, social and communication skills and the things that really start young people on that pathway. Does my hon. Friend agree that we should be providing that sort of service to all our young people across the UK?

[Andrew Ranger]

I totally agree; that is another thing that I will come on to in my speech.

It is now our turn to repay the debt that we owe young people. Many players will help us to solve this crisis, and one of them is business, both local and national. I want to recognise the businesses already meeting the challenge. Examples from my own constituency include Moneypenny. At national level, Sainsbury’s and Greene King, among others, are giving 100,000 much-needed opportunities to young people. Those are vital, but I ask all businesses to give young people opportunities. They may not necessarily have the skills on paper—on their CVs—but they are undoubtedly talented and will repay the chance that they are given. Spend the extra time doing an in-person interview with an applicant, who will gain much more than they would have in talking to an AI chatbot. Look past the gaps in their CV and see the potential behind it.

[Anna Dixon (Shipley) (Lab)]

I thank my hon. Friend for securing this debate. He will be aware that Milburn’s interim review found that 23% of young carers are not in employment, education or training and that 40% of those have spent more than 18 months out of employment, education or training, yet they have amazing resilience and experience to bring to a job. Does my hon. Friend agree that, in the review’s final report, we must outline a package of support for young carers and encourage businesses to take a chance on young carers and give them an opportunity?

[Andrew Ranger]

My hon. Friend makes an excellent point. That is a really good ask of the final review. We must look past the gaps in CVs and see the potential behind them; that faith will be repaid many times over.

Let me turn to the education sector. Milburn reported that two in three NEETs say that the curriculum did not prepare them for work. Careers education often arrives too late, at a time when decisions about the future are already being made. Research by Education and Employers shows that children’s ideas about what they can achieve are being formed by the age of seven and are already being narrowed by gender, background and whom they see around them. Careers education must start earlier than it does currently. By seven, every child should be meeting people from the world of work and seeing where their learning could take them—not to choose a career at that stage, but to open those doors before they are closed.

In the Netherlands, fewer than one in 20 young people is NEET. Work-based learning is built into vocational education. Employers and colleges plan placements together, through a national body that brings them to the same table. Work experience is not an add-on; it is part of the course.

To the third sector organisations doing remarkable work across the country, representatives of some of which join us in the Public Gallery today, I say thank you for all the work that you are doing. Keep going and be loud about it. You are our partners in this mission, and we have a great deal to learn from what you are achieving. In Wrexham, WeMindTheGap’s six-month programme is doing exactly this—getting young people back into work and, as my hon. Friend the Member for Clwyd North (Gill German) said, helping them to build soft skills: confidence and resilience.

I say to the Government that we must share the risk with employers. Support must not stop the day a young person starts work, because a job landed is not a job done. The mentoring and coaching that got them through the door must carry on through the first months, when too many placements fall apart. Let us work with those third sector organisations; let us support them, too, to deliver this. We need to strip away the paperwork. Too many employers who want to help are put off before they even begin. Every form that stands between a willing business and a young person is an opportunity lost.

Also, we need to open up the data. Information exists, but it is not joined up and no one is accountable for the whole of it. That is resulting in a hidden cohort of about 314,000 young people who are NEET, claiming no benefits and invisible to the very systems meant to help them. If we cannot see them, we cannot help them.

However, the answer cannot be designed entirely in Whitehall. Every place knows its own picture best. It knows which employers are hiring, which schools are struggling and which young people have dropped off the radar and why. In my constituency and many others, it will be the local authorities, the schools, the further education providers, the employers and organisations like WeMindTheGap that know the young people behind the numbers.

We need a whole-society approach to tackling this crisis. It takes more than all the individual elements acting alone. It requires families, communities, businesses, educators and public services working together, united by a shared responsibility to give every young person the opportunity to thrive—a system to mind the gaps. If we achieve the above, back in Wrexham James will be getting the support he deserves, on a work placement with a local business, backed by a mentor and a coach every step of the way, slowly but surely getting back on his feet.

Where do we want this generation to be in the next 10 or 20 years? Do we want NEET rates still to be rising because the big decisions, some not easy, were pushed down the track and never delivered, or do we want the phrase NEET to be a historical term—something that was, not something that is? Alan Milburn’s final report will be the moment of truth—not just for us in Parliament, but for businesses, third sector organisations, schools and colleges. It will ask whether we are willing to be partners in the great challenge of our time—one national moral mission; one team.

I thank all the wonderful organisations and individuals who have made this debate possible, and for everything they do to support young people across the country. I also thank Alan Milburn and his team, including Peter Hyman and Shuab Gamote, for their visit to Wrexham to meet our incredible young people as part of the wider work on this report. They have had a massive impact already, and the impact on the future of our country will be substantial. In Wrexham, 10 years from now, where is James? He is in secure, long-term work and is happy, having built a life that he is proud of and fulfilled by. That is all we should want for every young person.

[Several hon. Members rose—]

[Esther McVey (in the Chair)]

Order. I remind Members that they should bob if they wish to speak. Due to the number of people who have indicated their wish to speak, there will be a strict time limit of two minutes for speeches, so that we can get through everybody. I call Ann Davies.

09:41

[Ann Davies (Caerfyrddin) (PC)]

Diolch yn fawr, Gadeirydd. It is a pleasure to serve under your chairmanship. Let me start by saying that I do not like the phrase “not in education, employment or training”, or NEET; I much prefer LEET, because most young people are looking for employment, education or training. The NEET phrase makes people feel as if they are not trying hard enough, which could not be further from the truth. Young people are hard-working and passionate, and they want to contribute their skills to the workforce, but our system does not set them up for success. Many have not yet found the opportunities or pathways that allow them the space to figure out and find their niche.

Everyone is good at something, but too many young people are not afforded the opportunity to figure out what that may be. The most recent data shows that 14.6% of young people aged 16 to 24 in Wales are not in education, employment or training to the year ending June 2026. That is an unacceptable figure. Nearly one sixth of our talented young people in Wales have not been given the opportunity to thrive and find their place.

One thing that stood out to me from Milburn’s interim report was the impact on place of the levels of young people not in education, employment or training. In rural Wales, barriers to obtaining a driving licence or having access to a car makes that a very visible problem. Young people facing financial constraints are more likely to struggle as a result of those barriers. If we are serious about widening opportunity, tackling child poverty must be a priority. With that in mind, can the Minister confirm whether the Welsh Cynnal payment will be disregarded for benefit purposes?

I have met so many fabulous young people since becoming the Member of Parliament for Caerfyrddin, and I am really proud to be their MP. Minister, what steps are the Government taking to ensure that every young person, no matter their postcode or financial background, has the same chance to succeed?

09:43

[Alex McIntyre (Gloucester) (Lab)]

It is a pleasure to serve under your chairship, Ms McVey. I thank my hon. Friend the Member for Wrexham (Andrew Ranger) for securing this important debate.

Alan Milburn’s interim report is stark. Nearly 1 million young people aged 16 to 24 are not in employment, education or training. In Gloucester, around 2,500 young people are in that position. When I speak with them, I hear the same thing time and again: they have worked hard, but the opportunities that were meant to be there for them have turned out to be closed doors. They are not lazy: 84% of young people who are out of work or training say that they want a job or to be in education.

The interim report is clear that we need a whole-of-society effort. I welcome the Prime Minister’s leadership on the issue, but it must be matched by local leadership across the country. That is why I have made it my mission to ensure that no young person in Gloucester is left behind. At the end of this month, I am hosting the Gloucestershire Futures summit at Kingsholm stadium with Gloucestershire county council, bringing schools and colleges, employers, health services, local Government and the voluntary sector into one room. Gloucester’s young people have talent in abundance, supported by fantastic schools, local colleges and training providers. What they need are open doors and clear pathways. I am hopeful that our upcoming summit will help build the consensus needed to deliver them. I am delighted that the Skills Minister will join us for the summit.

One of the big things that I hear from young people is how demoralising it is to apply for hundreds of jobs, only to be ghosted and not receive a reply from employers. However, small businesses in Gloucester tell me that they receive hundreds of applications for a single role. They want to do their bit, give feedback and support young people, but they need help to do it. I am pleased that this Government are acting. The £3,000 youth jobs grant supports any employer that takes on a young person who has been out of work for six months, and the new partnership with hospitality businesses aims to create 100,000 jobs for young people. What more can the Government do to help smaller businesses with practical recruitment support as well as grants to play their part in tackling this crisis?

Gloucestershire’s young people have talent in abundance. I believe that it is our moral mission in Gloucestershire to support them. What they need are open doors. I look forward to Alan Milburn’s final report helping us to open them.

09:45

[Adam Dance (Yeovil) (LD)]

When the Government commission a review, people often just roll their eyes, because we all know there is no better way to kick an issue down the road than with an independent review. Few issues have been kicked down the road as much as doing something about the one in eight young people not in employment, education or training. Given what has been published so far and the conversations that I have had, I am genuinely hopeful that the Milburn review will give us a real shot at change.

I would talk all day about this, but given the time, obviously I cannot. However, I would like to focus on two special areas of the report: rurality and special educational needs and disabilities.

The review has highlighted what is obvious to everyone from south Somerset: transport is a huge barrier to work and further education. Nothing else that a young person or the system does matters. The review highlights that bus journeys in rural England have declined sharply. We have seen this with the No. 11 and No. 54 bus routes in Yeovil. Even if there is a bus, some young people still face three to four-hour delays. We urgently need action to improve rural transport networks and access to affordable driving lessons and tests. The £2 bus fare cap is a good start, but we need a new bus fleet in Somerset and to start looking at more innovative ideas, such as smarter booking for our most isolated communities.

Equally, the Milburn report paints a clear picture of the challenges faced by young people with SEND, who are 80% more likely to be NEET. I have been saying for ages that the lack of early intervention is largely the driver of this problem. That is backed by the report, which highlights that children who fall behind at five years old are, on average, still behind at age 16. I was incredibly happy to hear from academics that the Universal Classroom Project got the increased Government funding that we had been calling for to develop a free profile-building screener for key learning strengths and weaknesses.

I understand that in the final recommendations, Alan Milburn will look to present solutions radical enough to address the scale of the crisis. I can only hope that the Government do something about this.

09:48

[Jack Abbott (Ipswich) (Lab/Co-op)]

It is a pleasure to serve under you today, Ms McVey. I thank my hon. Friend the Member for Wrexham (Andrew Ranger) for securing this important debate.

It is clear that we face an urgent national crisis that has devastating consequences. This is a challenge facing every part of our country. I am pleased to say that the number of NEETs in the east of England has fallen since 2024, from 14.2% to 11.7%. However, that figure is still far too high, and behind it our young people are unable to move forward into the next stage of their lives. People should be building skills, gaining confidence and learning how to stand on their own two feet; instead, they are struggling to take those important first steps into adult life. Alan Milburn is right to warn against the emergence of a lost generation.

This is about more than youth unemployment. It is about being disconnected from the education system and the labour market, but also from the opportunity, confidence and independence that good work can provide. There is a cost to young people’s confidence, health and future earnings. The moral crisis is all too clear. We are at risk of abandoning a generation of talented, ambitious people to worklessness, poor health and poverty.

I want to highlight a few things that we are doing in Ipswich and Suffolk to turn the tide. There is the new youth hub funded by the Government in Ipswich, which brings together employers, training providers, careers advice, mental health support and housing support under one roof. That is incredibly welcome. Sizewell C is a transformational project for our energy security, but there is also what it represents to our young people. I was delighted to secure 500 guaranteed jobs for Ipswich from that project. Construction technical excellence colleges also deliver employability support.

We as a Government must ensure no gap in support between the restart scheme, which has been incredibly successful, and the future employment support programme. When there is an apprenticeship to apply for, skills training to access and a career to build for, ambition has somewhere to go. Young people need the ambition, the potential and the opportunity all at the same time. Behind every headline figure is a young person who wants to contribute. Our responsibility is to make sure that chance is there.

09:50

[Hannah Spencer (Gorton and Denton) (Green)]

Last week, I went back to Hideout, a youth club in Gorton that opens its doors to hundreds of young people every week. I asked some of the kids I met about their future hopes and dreams and they all scrambled to tell me about who they thought they could be; I could genuinely feel the hope in the air. But ask anyone slightly older—a teenager or young adult—and you hear a clear, bleak understanding of the ways that the world is already letting them down. Their hope has faded away.

Almost a million young people are growing up finding themselves not in education, employment or training. Every week I meet young people across the constituency who want to work hard and build a good life for themselves but find that the system is stopping them. A 25-year-old care leaver with no family, no network and no safety net told me that he tries so hard every day to stop himself becoming homeless, Despite being a university graduate, he cannot find secure, well-paid work.

The risk of being not in education, employment or training is not equal: it doubles if someone comes from a disadvantaged background and has low qualification levels, and is far worse in Greater Manchester and the north than in London and the south-east. Opportunity should not be a postcode lottery. Those who need a hand most are being left behind by the Government’s sustained real-terms funding cuts to schools and colleges, despite ever-increasing demand, and because small and medium-sized businesses are unfairly being asked to train up the next generation of workers without the money and support needed to make that a success.

Young people do not need cuts to the universal credit health element, which will just harm those who cannot work. Cutting cash benefits does nothing to improve employment outcomes. What they need is an approach from this Government that acknowledges that investment now will save money in the long run. What they need is change to the very structure of our economy and education system, more flexible and inclusive post-16 pathways and green skills at the forefront.

The Milburn review is clear that urgent action is needed. The question is not whether young people in Gorton and Denton and across the country have ambition, but whether this Government are willing to match it.

09:52

[Peter Swallow (Bracknell) (Lab)]

The Milburn review interim report was clear that in order for the support provided to be fit for young people to enter the workplace today, not only the welfare system but our health and our education systems need to be fundamentally rewired. Education has a critical role to play in preparing young people for the workforce and for life.

What we hear again and again from employers is that young people, even in entry-level roles, have not been able to develop the skills that are essential in any workplace, and indeed for life—skills like communication, problem solving and critical thinking. This is not just about the NEET crisis we are facing today—painful though it is already for so many—or bringing down the welfare bill, although that is vital too; it is about taking the opportunity now to grasp the even greater NEET crisis that may be coming down the track as we face the reality of an economy being fundamentally reshaped by AI.

It is clear that AI is the defining technology of our time. In just a few years we have seen it power breakthroughs in fields as wide-ranging and important as medical diagnostics and research, agriculture and mathematics. That is why it is so fundamental that young people develop the skills they need not only to use AI critically and thoughtfully, but also to exist in a world where things for which we have always relied on humans are increasingly being automated.

I have long argued that an education system rich in the humanities must be at the heart of preparing young people for the age of AI, not just because of the content they would learn, but because of the skills the humanities would encourage them to develop. As part of its research into the future of the labour market, the National Foundation for Educational Research found that it was skills such as collaboration, communication, problem-solving and information literacy that will be most needed by employees in 2035. That is why it is so important that we develop an education system that provides young people with those skills.

09:54

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Ms McVey. I say a big thank you to the hon. Member for Wrexham (Andrew Ranger) for setting the scene. Alan Milburn’s report held up a mirror to the stark and uncomfortable reality in the United Kingdom that 1 million young people aged 16 to 24 are currently classified as not in employment, education or training, but a staggering 84% of them actively want to work, learn or train—the work ethic is clearly there.

The report refers to a system failure across health, education and welfare. There has been a devastating 70% increase in the number of young people struggling with work-limiting health and mental health conditions, and the number with a disability has risen from 21% to 44%. My question to the Minister is: what is being done to help those with mental health issues and depression? That failure costs our economy a massive £125 billion annually.

In Northern Ireland, we see exactly the same structural failure. Cutting funding to local youth work and training programmes has stripped away the last line of defence for vulnerable young people—especially care leavers and those from rural communities.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does my hon. Friend agree that many young people do not want to go into formalised education? We need to reach out to those communities to try to assist them and deal with this problem once and for all.

[Jim Shannon]

We certainly do. I thank my hon. Friend for that point.

The problem is not specific to the UK mainland; it affects us back home in Northern Ireland to a great degree. We need a complete shift from a passive welfare state to an active working state. Powers and funding must be handed down to local authorities and the devolved Executives, which understand the job markets in their areas. The mental health system must work hand in hand with employment hubs so that getting better and getting into work are part of the same journey—it is important that we marry those two together. Perhaps more importantly, we need to deliver the promised youth guarantee by providing clear pathways into work, education or apprenticeships, and we need a massive expansion of meaningful work experience placements.

I recognise that the Labour Government have a plan for young people, but if we continue to allow 1 million young lives to remain on hold, we are writing off the future of our workforce and fracturing the social fabric of our communities. It is time to treat youth detachment as the national emergency that it is, break down the silos around Departments and give the next generation the genuine opportunities that they deserve.

09:56

[Amanda Hack (North West Leicestershire) (Lab)]

It is a pleasure to serve under your chairship, Ms McVey. I thank my hon. Friend the Member for Wrexham (Andrew Ranger) for securing this incredibly important debate.

Unsurprisingly, Alan Milburn laid out in his interim report that the current system is failing a generation. I had an opportunity to host a meeting with Alan and the Secretary of State for Work and Pensions to launch Opening Shift, alongside the British Retail Consortium, which has worked with the Department for Work and Pensions and retailers. Opening Shift offers more than 11,000 work placements for young people, with a view to reaching 100,000 jobs by the end of the Parliament, getting young people on to the very first rung of the ladder.

In 2012, the coalition Government scrapped compulsory work experience, despite major objections from employers. A 2015 poll by the British Chambers of Commerce found that 82% of bosses said that pupils under 16 should be offered work placements. For employers to feel confident to take a risk on employing anybody, let alone a young person with limited experience, they need to have the experience of seeing young people grow and develop in the workplace. The role of work placements should never have been downplayed. Critically, they are a first step into the world of work.

In my earlier career, I was lucky enough to work alongside the inspirational Leicestershire Education Business Company, an independent local charity set up to support employers. It still organises and supports young people and employers with work experience locally today.

Data from comparable countries shows that when more 14 to 16-year-olds have employment experience, fewer young people are NEET. In almost every conversation with a NEET young person, the authors of the review found an interest, a passion and a talent, despite the barriers holding them back. I had the same experience on the Work and Pensions Committee. Young people want to work; we just need to give them the inspiration.

09:58

[John Milne (Horsham) (LD)]

The first instalment of the Milburn review has been well received on both sides of the House. As a member of the Work and Pensions Committee, I had the chance to ask Alan Milburn about it a few months ago. One of the things he said, which got a lot of press but has been misunderstood, is that we spend £25 on benefits for every £1 we spend on helping young people into work. Contrary to what some on the right have assumed, that emphatically does not mean that slashing benefits is the way to cure youth unemployment. For years under the Conservatives, jobcentres operated under a sanctions-based culture. That failed. Job hunting is difficult, and totally demoralising job hunters by distrusting their every move is not the way to coach them through their first interviews.

In evidence to the Committee, young people described being made to feel like a “leech”. How does that help anyone? The demand for people to demonstrate that they have submitted large numbers of job applications like notches on a belt has been completely destructive. Local employers have disengaged in my constituency because they have been spammed with poorly targeted applications. We should not be so hasty to write off the current generation as a bunch of snowflakes. Rather, we should remember that the current level of nearly 1 million NEETs is less than the peak back in 2011, when we had 1.25 million. The remarkable fact is that 44% of NEETs are not claiming any kind of benefit at all. Surely, even the most zealous right-winger can see that that challenges the cliché of an out-of-control benefits culture.

Success stems from intervention at an early age. When kids stop attending school, that is a powerful indicator of their likelihood of becoming NEETs later. In that context, the Government’s youth guarantee scheme will not do the trick. It only kicks in after 18 months of unemployment, when the damage is done. It is also not available to kids on benefits. This will not be a quick fix, but actions today will bring huge long-term rewards for the people who matter most: our children.

10:00

[Brian Leishman (Alloa and Grangemouth) (Lab)]

Good morning, Ms McVey; it is a pleasure to have you in the Chair. I thank my hon. Friend the Member for Wrexham (Andrew Ranger) for introducing the debate.

The Milburn review gets a lot right. It is right to say that the NEET rate is so high because of decades of structural dysfunction in education, health, welfare and employment support. It is right to say that poverty shapes early childhood and is a contributing factor to how children grow up. It is also right to say that care-experienced young people are particularly at risk of disengagement. Clearly, a reason for that is that support and stability fall away when they are most needed.

The fact that 84% of NEET young people surveyed want to find a job, education or training shows that young people do have a desire for work, contrary to the stereotyping by some politicians and some in the media. Crucially, the report highlights that there are fewer entry-level roles and apprenticeships available—their number is down over 40% in the last decade. The Government must take an early-interventionist approach, provide intensive employment support and work with organisations and charities with comprehensive experience in this area.

However, the Milburn report is weak on the role of incentives in the social security system. It suggests that the system’s design encourages young people to claim and remain on health-related benefits, rather than participate in work and training. That narrow framing is wrong and does not take into account individuals with complex needs having to negotiate a difficult system. Claiming the UC health element of personal independent payment is no easy process. The Government must end the degrading manner of the system and correct the fact that people are often wrongly denied support as a result. For so many, the act of claiming is an undignified and demeaning endurance test. That is a stain on the state. Reform of the system is needed, but it must be achieved with care, compassion and investment.

10:02

[Darren Paffey (Southampton Itchen) (Lab)]

It is pleasure to serve under your chairship, Ms McVey. I congratulate my hon. Friend the Member for Wrexham (Andrew Ranger) on securing this very popular and important debate.

The Milburn report shows that we have to change how we talk about young people out of work and education. As has just been cited, 84% of those who we call NEETs do not want to be out of work. They do not lack potential or desire; they lack opportunity. That is the problem we have to fix. The report also shows that disconnection begins long before the age of 16, in school. Sadly, I see that in Southampton, where persistent absence has been creeping up year on year.

I very much welcome the push in the curriculum and assessment review to make school more engaging—to broaden the curriculum so that there are more hooks, including, as my hon. Friend the Member for Bracknell (Peter Swallow) said, in the humanities. If we allow children to switch off at around 14, they are far more likely to be out of education and training at 18.

Southampton has also shown some great opportunities that work. Safe New Futures is a local charity that works with long-term unemployed young people, combining mental health support and group cognitive behavioural therapy with job-ready skills and vocational training. When I visited, one young person told me that, after an incredibly difficult period, the course had given them the confidence to enter the world of work and pursue their career. Half of the NEET participants in that scheme go on to find work. Saints Works, which is run by Saints Foundation—the charitable wing of our excellent football club—combines skills growth and mentoring, and then in-work follow-up support once someone has got into a job. We also have a young adults employment hub, which brings the council, jobcentre work coaches and youth workers under one roof.

None of those are national schemes; they are all local partnerships that know their young people by name, and that is the lesson I hope the final report draws. My question to the Minister is this: when we respond to the final report, will there be sustained funding for local programmes like these that are getting the work done?

10:05

[Rachael Maskell (York Central) (Lab/Co-op)]

It is a pleasure to serve with you in the Chair, Ms McVey, and I thank my hon. Friend the Member for Wrexham (Andrew Ranger) for securing today’s debate.

As a result of “Young people and work”, which is evidence-based and astute in its diagnosis, we understand the long-term sustained challenges. The challenges that young people face today have been sustained through generations. Of course, this is the generation who had Sure Start stripped away and youth services removed, and have been in the straitjacket of the education system—not to mention covid. Young people in society today face multiple challenges—the challenges are high—but we have a great opportunity to change the system.

I have met young people who have been on the Spear programme in York, which gets 78% of young people from long-term unemployment into work. It does not penalise young people but encourages them, giving them confidence and aptitude to engage in work—the skills that are needed to get work, but also to work with employers in the city. That is really important, because employers need to be equally engaged as partners in the programme.

In his diagnosis in chapter 7 of his report, Alan Milburn says that we do not just need programmes; we need a system change, and one focused on outcomes. The one point that I want to draw out for the Minister is that it starts too late. These programmes kick in when young people are 16 and are already on the pathway. We should introduce them into schools, with not only careers support and work placement opportunities, but employability programmes. The Spear scheme is a four-week programme—two half-days a week and then a one session one-to-one where young people get the skills and are driven forward—but then a year of support into work. That is the kind of programme we need.

10:07

[Joe Morris (Hexham) (Lab)]

It is a pleasure to serve under your chairship, Ms McVey. I draw attention to my entry in the Register of Members’ Financial Interests.

In the north-east, almost one in five young people—over 53,000 young people—are not in education, employment or training. Every week, whether I am in Haltwhistle, Haydon Bridge, Allendale, Bellingham, Prudhoe, Hexham itself, Throckley or any of the other 200 communities that make up my constituency, I meet young people who are being failed in different ways by a system that has for a long time failed to perform for them.

For a long time, constituencies like mine simply have not been part of the national conversation on this issue. Rural youth unemployment has been off the political agenda for quite some time. I think it was in 2012 when the Commission for Rural Communities warned that rural NEET numbers were rising fast and no one in government was taking overall responsibility for it. In my communities, this is a crisis that is rooted in decades of complacency and failure to take on the underlying factors. It is hard enough for young people to find a job at the moment without having to worry about a bus that may never arrive or a train that may not be on time.

I want to touch briefly in the short time I have—I would make a longer speech if I had time—on the requirement for post-16 travel support. We must make sure that any holistic system that comes forward works for the entirety of the communities it serves. In Northumberland, the post-16 support that does exist is targeted largely at the central Alnwick to Morpeth corridor rather than at west Northumberland. The Morpeth Conservatives who run the country council are largely occupied with making sure the system works for that corridor rather than being a holistic solution for the entire county. That is not something that happens by accident; it is due to the ongoing neglect of the west of the county by the county council.

Let me ask the Minister three further things. Will the system be rural-proofed from the start, will the Government look further at councils to bolster the post-16 travel duty, and will they back vocational and SEND provision closer to where young people live, even in rural communities where the headcount is naturally smaller?

10:09

[Paul Davies (Colne Valley) (Lab)]

I want to acknowledge the important role of the Milburn review and its interim report within the broader context of welfare reform. Social security is important in achieving social justice, but it is also a key part of a thriving and resilient economy, providing the necessary safeguards to help people in times of need and a route back to work for those that can.

The Department for Work and Pensions spends roughly £25 on benefits for every £1 spent on employment support. In practice, that means that only around one in five NEETs receive meaningful employment support. That is simply not sustainable. I welcome the emphasis in Milburn’s interim report on strengthening employment support for young people, and I expect the final recommendations of the review to build on that with a clear national strategy.

Such a national strategy is crucial, but what we do locally is equally important, hence the importance of partnering with local providers and career services. In my constituency I have been leading the Aspire project, in which I work with Kirklees college, C+K Careers and local businesses to identify young people who are NEET and pair them with mentors who can offer guidance, support and work experience. The aim is to help them gain confidence in themselves and provide pragmatic advice when it comes to accessing education and employment opportunities. That is a first step, but it is a big step for many of the young people in engaging with colleges and employers. Local and national need to be in lockstep when it comes to the issue of NEETs, so will the Minister please comment on how the Government can help achieve that?

10:11

[Patrick Hurley (Southport) (Lab)]

It is a pleasure to serve with you in the Chair, Ms McVey.

The number of young people not in education, employment or training is one of the biggest challenges facing the country. Contrary to stereotype, though, in my experience most young people desperately want the opportunities that previous generations took for granted. The problem is that those opportunities simply are not there for too many of them. That is partly because we have spent so long over the past few years talking about the cost of welfare, but nowhere near enough time talking about the cost of failing to invest in our young people. I am pleased that the Milburn report will reportedly call for much more investment, because we cannot seriously expect to tackle the problem on the cheap.

It is not just about how much we spend; it is about how we spend it. Earlier this year I led a debate in this Chamber on place-based employment support. I made an argument then that I wish to repeat today. The barriers facing a young person in my Southport constituency are not necessarily the same as those facing someone in London or Manchester, so localism matters. We need to give local areas the freedom and resources they need to bring together colleges, employers, jobcentres, health services and community organisations and design support around the people who need it. We need a system that aligns training and education with the types of jobs that might be on offer in the local area. There is no point in training young people for jobs that do not exist locally now, never mind in 10 or 15 years’ time.

What we are debating today has to be part of a wider economic strategy that creates decent jobs in our towns and communities, not just in our big cities. My request of the Minister is simple: let us invest properly, trust local communities to deliver, and judge success not just by how much we cut the benefits bill, but by how many young people we help build decent, fulfilling working lives. Making the country a better place for the next generation should be what we are here in this place to do.

10:13

[John Whitby (Derbyshire Dales) (Lab)]

Every young person deserves the opportunity to fulfil their potential. Where someone grows up, the circumstances into which they are born and the financial position of their family should never determine the opportunities available to them. We have 1 million NEETs, but we should be clear that this is not simply a question of young people needing to try harder. It is about whether we, as a society, are providing the right opportunities, support and pathways into employment. I particularly want to highlight the challenges facing young people in Derbyshire Dales and our rural communities.

Public transport is often limited, particularly in the evenings and at weekends. A young person living in a village outside Matlock, Ashbourne, Bakewell or Wirksworth might find that a job, apprenticeship or college course is technically available but practically inaccessible. Transport costs can make low-paid, entry-level employment financially unviable. Limited local provision could also mean that young people have to travel considerable distances to access further education, vocational training or specialist support.

Any effective measures must recognise and address those challenges. There are real opportunities in Derbyshire Dales: our tourism and hospitality businesses, agriculture sector, construction industry, care services and growing green economy all need skilled and enthusiastic young people. We should be connecting local people with those opportunities, rather than allowing vacancies and skills shortages to exist alongside young people struggling to find their first job. I welcome the steps that the Government have already taken. The additional £2.5 billion investment in the youth guarantee, the growth and skills levy, the ambition to create 500,000 opportunities, expanded youth hubs, apprenticeship support and the local jobs guarantee are important interventions, as is their commitment to removing barriers for disabled young people and those experiencing mental health difficulties. We must recognise that people need different kinds of support and that a one-size-fits-all approach will not work, but there is so much more to do.

In particular, I want to see the expansion of successful local initiatives such as Youth Employment Support Derbyshire, which provides young people with careers advice, training and one-to-one support, and the Unstoppable Derbyshire programme, which helps 18 to 21-year-olds overcome barriers including mental health, financial difficulties and housing problems. Those initiatives demonstrate what can be achieved when support is tailored to individual circumstances. We should build on them and ensure that young people in Derbyshire Dales can access comparable support regardless of where they live.

10:16

[Al Carns (Birmingham Selly Oak) (Lab)]

Nearly a million young people are outside education, employment or training. We call them NEETs, but we should consign that term to history as it defines them entirely by what they are not, and it tells us nothing about what they can do or how they can get there. I have been spending a lot of time in Selly Oak. Earlier this year, I brought local employers together to talk about what they were seeing. They told me that too many young people were reaching them without the confidence or basic communication skills needed to get into work.

Some of those problems start exceptionally early: at 10 to 16, not 16 to 24. I have spoken before about boys and young men. Just 62% of boys are school-ready, compared with 75% of girls, and they fall further behind through school. The NEET rate nearly trebles at 18, when the statutory participation age ends. If school has not worked for them and there is no obvious next step, it is disappointingly easy to drift out of sight. I am convinced that we need employers’ involvement much earlier with work exposure to inspire, embolden and enlighten, and to close the gap between expectation and reality across the job market.

The Government should be obsessed with closing that gap. As we invest in rebuilding British industrial capacity, we need to think about where the workforce will come from. If a company is expanding a factory with public support, who are we training to work there? If the company knows it will need technicians in five years, it should be working with schools and colleges much earlier. An apprenticeship will not be the immediate answer for everyone, as some young people will need help before they are ready or before an employer is willing to give them their first experience of work. The youth guarantee needs to reach those people.

Alan Milburn estimates the annual cost of youth inactivity at £125 billion, which is an extraordinary amount of money. Minister, are we working across the Department for Education, the Department of Health and DWP? Are we working earlier with 10 to 16-year-olds? Are we closing the gap between expectations and the reality of the job market? We should be much better at bringing employers and education together, and in doing so we should consign the term “NEETs” to history.

10:18

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Ms McVey. I thank my hon. Friend the Member for Wrexham (Andrew Ranger) for securing this debate. A lot has been said by hon. Members from across the House that I will seek not to repeat, but I would like to push the Minister on a couple of points coming out of the Milburn review. Its diagnosis shines a light on what was known to most of us. Indeed, Stoke-on-Trent has quite often been seen as an exemplar both of where things were terrible and of where things are getting better. Our NEET rate has dropped from 16% to below 10% because of work done by partnerships, but we still have more to do.

Part of that is because our local environment has flexed to do what it needs to, sometimes against Ofsted and Government guidelines. I commend to the Minister the work done by the CEO Futures Forum, which brings together multi-academy trusts from across the city to look at the pathways that young people need now for the jobs that will exist in the future, much as my hon. Friend the Member for Birmingham Selly Oak (Al Carns) said. We are constrained by the fact that good apprenticeship providers are unable to take on the numbers of young people who want to do apprenticeships, because they are held back by the de minimis rules under the apprenticeship provider and assessment register regulations. I urge the Minister and her Department to look at how, if this is a moral crusade, we can use our entire arsenal to ensure that every young person has the right pathway. If need be, that should include liberalising some of the rules around the registration of apprenticeship providers so that groups such as Dan Canavan’s Spark Group can take on the young people they want.

I urge the Minister not to fall back on some of the rudimentary politics that suggests that artificially capping the wages we pay young people, in contrast to the wages we pay a full-time adult, is a way to address the NEET problem. People should be paid fairly for the work they do, regardless of their age or the way they do it. That was a Government manifesto commitment, but the siren voices are calling for it to be slowed down. I urge the Government to resist that as much as they can.

10:20

[Johanna Baxter (Paisley and Renfrewshire South) (Lab)]

It is a pleasure to serve under your chairship, Ms McVey. I congratulate my hon. Friend the Member for Wrexham (Andrew Ranger) on securing this vital debate.

The interim report of the Milburn review is as stark as it is comprehensive. It is a damning indictment of a broken system that has left more than a million young people across the country not yet in employment, education or training. That is more than a million young people whose talents, aspirations and potential are at risk of being wasted, leaving long-lasting scars on themselves, their families, their communities and the taxpayer. Such a figure reflects not individual failure but a systemic failure at the heart of Government policy over many years.

For too long, young people have been failed by Governments that lacked the very ambition that they themselves hold. Conservative Governments in Westminster and the SNP Government in Holyrood have presided over a steady erosion of opportunity. Those parties’ level of interest in today’s debate is instructive. They failed to equip young people with the skills they need, they failed to provide the support that young people deserve, and they failed to recognise that lack of opportunity is a driving force behind rising youth joblessness.

We see the career ladder being weakened everywhere. Entry-level jobs have declined dramatically, with 1.6 million fewer opportunities available across the country. The traditional Saturday jobs that many of us had when we were growing up—I worked in our local veterinary surgery—have been disappearing for years, while apprenticeship starts have fallen by 35% over the last decade. The hiring process itself is broken.

Young people desperately want to work, and they need to be given the opportunity to do so. These complex, multifaceted challenges deserve a comprehensive plan that is equal to the generational scale of the crisis, so I urge the Minister and the Government to set a clear direction that fixes youth mental health services, reforms technical education, bridges the transition gap between compulsory education and employment, and transforms the culture in our jobcentres.

10:22

[Laura Kyrke-Smith (Aylesbury) (Lab)]

I congratulate my hon. Friend the Member for Wrexham (Andrew Ranger) on securing this debate. Across my constituency of Aylesbury and the villages, there is no shortage of talent or ambition among our young people. What they lack is opportunity, confidence and sustained trust and support. I will share three ideas that I think will help, and I look forward to the Minister’s response.

First, we have to recognise the multiple pathways to success in work. Both national and local policy should better recognise and support self-employment and entrepreneurialism as legitimate employment pathways. We have a fantastic example in Aylesbury, where the “Making It” programme run by Youth Concern combines leadership development with guidance on self-employment and the chance to gain direct experience working in the creative industries. The programme has had strong interest from young people, particularly those for whom traditional employment feels too inaccessible or unattractive.

Secondly, we have to measure success not just by how many people enter jobs but by whether they stay in them. The Buckinghamshire College Group offers the “Positive Steps” programme in collaboration with Jobcentre Plus and Buckinghamshire Healthcare NHS trust. The jobcentre identifies people who are unemployed, the college provides training through its immersive healthcare suite and its work preparation support, and the NHS trust provides a placement and a guaranteed interview. The important point is that it does not stop there. The college’s programme data shows that 85% of participants are not just getting jobs but progressing into permanent, sustainable NHS employment.

Thirdly, we have to recognise that employment is just one part of young people’s lives. Too many young people experience poor mental health, family difficulties, exclusion from education and other challenges. As a result, they lack the confidence to progress into education, training or employment. Beyond the job interviews and the work prep, they need access to mental health support, as well as wider support to help them recognise and articulate their strengths and skills. I look forward to the Minister’s response, and to making Alan Milburn’s recommendations a reality for young people in Aylesbury and the villages.

10:24

[Ian Sollom (St Neots and Mid Cambridgeshire) (LD)]

It is a pleasure to serve under your chairship, Ms McVey. I congratulate the hon. Member for Wrexham (Andrew Ranger) on securing this debate.

Alan Milburn’s interim report is a thorough and, in places, uncomfortable piece of work, but it is an important foundation for anyone serious about tackling the waste of a million young people’s talent, not least because it takes apart some myths. Some 54% of young people who are NEET told the review that they want to work, and another 30% want to get into education or training. These are not lazy young people: as the report puts it, they are “exhausted”. The mechanisms that used to bring young people into work are working less well. The first rung has thinned. The share of 16 and 17-year-old students doing any paid work has fallen from 35% in 2006 to just 19%.

[Steve Darling (Torbay) (LD)]

UKHospitality highlights that over 100,000 jobs have been lost in the hospitality sector, particularly in areas such as Torbay where hospitality can be the first rung of employment. Does my hon. Friend agree that we are seeing a crisis of opportunity for young people, rather than a NEET crisis?

[Ian Sollom]

I agree. Opportunities have been thinning for a long time, and that is a big part of the issue.

Employers ask for experience, but the pathways through which experience was once gained have narrowed or gone. The report is blunt about why the system is failing. Britain has not ignored youth employment. It has had the new deal for young people, the future jobs fund, the youth contract and kickstart, but each was abolished once the immediate crisis passed.

Milburn describes what we have as “parallel play”: education is accountable for attainment, welfare for benefit flows and health for treatment, but nobody is accountable for the pathway from childhood to working life. The clearest sign of that is what the report calls the “hidden cohort”: about 314,000 NEETs aged 18 to 24 in England, nearly half of whom claim no benefits at all. They are in no caseload, and no institution is responsible for them.

The system needs a long-term commitment through a permanent architecture. That is why the Liberal Democrats advocate a wholesale overhaul of jobs coaching so that every young person has a real person who sits down with them several times a year and helps them to plan where they want to get to, building on models from the Netherlands and Germany.

Such support has to be delivered locally, because labour markets, transport and employers operate locally. The risk, Milburn warns us, is that without a national framework, devolution can become a delegation of failure. Skills England ought to be part of that national framework, but in its short life it has already been moved from one Department to another, and it remains simply an Executive agency. It needs supercharging; it should become a genuinely independent body with the standing to work across Government, including local government.

The Milburn review estimates that for every £1 the Department for Work and Pensions spent on employment support for young people in 2024-25, about £25 was spent on benefits. In its words,

“The UK’s approach for decades has been to pay the bill for…youth inactivity, rather than invest in preventing it”.

Milburn argues that the Treasury’s usual value-for-money tests do not look far enough ahead to capture the lasting damage of time out of work or training at a young age. Once that is counted, early intervention pays for itself many times over.

In the Budget last week, the Chancellor announced that from the next spending review there will be a ringfenced budget for prevention. The question is whether the support for young people at risk of becoming NEET will go in that ringfenced budget. The report shows that we can already identify many of those most at risk while they are still at school, but the pupil premium stops when a young person turns 16, at exactly the point that the risk peaks. Extending it to post-16 learners, including those in further education, is a long-standing call from the Lib Dems. I hope we see it in Milburn’s prescription. We would also like to see a guarantee to every young person of 100 hours of work experience before they turn 18, so that it no longer depends on who their parents happen to know.

That brings me to who else needs to be part of the solution. Milburn has said that there is a contract at the heart of all this, referring to the relationship between young people and the state. I suggest that the contract is missing a signatory. For most young people, the first job is offered not by the state but by an employer. If the final report’s recommendations are to work, employers must be part of the bargain. Milburn’s own evidence makes the case. He argues that as the cost of employment rises, the case for taking on someone inexperienced becomes harder, unless employers are given the support to offset the risk.

On cost, the national insurance changes of the Government’s first Budget undoubtedly added to the pressure on part-time, entry-level roles, especially in retail and hospitality. That is why we Liberal Democrats have called, at the very least, for a lower rate between £5,000 and £9,100, but cost is only half of it. A large employer can absorb the risk of a young recruit who needs supervision and support; a small firm often cannot, however cheap the hire. That is why we have proposed skills co-operatives as part of the solution, with SMEs pooling training and pastoral support so that no single business carries the whole risk of giving a young person their first start.

I realise that the Minister will not pre-empt the final report, so I have three questions of principle. First, the report highlights that no institution is responsible for this. Does the Minister accept it as principle that someone must be, and should that responsibility be with a named local body working within a national framework that guarantees a minimum standard? Secondly, will employment support and post-16 provision for disadvantaged young people count as preventive spending when the new ringfenced budget is set? Thirdly, before any new obligations are placed on young people, will the Government ensure that the support offer is in place? The report says that inaction or tinkering at the edges is itself a decision—a costly one. I hope the Minister will tell us that the final report will be met with something much more than that.

10:32

[Mr Andrew Snowden (Fylde) (Con)]

It is a pleasure to serve with you in the Chair, Ms McVey. I congratulate the hon. Member for Wrexham (Andrew Ranger) on securing the debate. I thank all Members who have contributed, including the hon. Member for Horsham (John Milne), who referred to the thoughts of even the most zealous right-wingers. I am not sure where I sit on his zealot-o-meter, but perhaps we will see by the end of my speech—I am sure I will wear it with pride. It is great to be shadowing the Minister; it is always wonderful to debate a fellow Boltonian.

The issues raised by the interim report are made all the more topical by the delay in publishing the final report and by last week’s Budget, which was notable for the absence of any action on the number of young people not in education, employment or training. Alongside the Budget, the Office for Budget Responsibility published a figure that should give every Member pause. Over this Parliament, the Government will spend £911 billion on working-age welfare. That is more than £48,000 for every one of Britain’s more than 18 million working households.

There are few subjects this House debates that matter more to the future of our country. Behind every figure in Alan Milburn’s interim report is a young person whose working life is either not starting well or not starting at all.

[Jim Shannon]

In my contribution I highlighted the issue for young people with mental health issues. That the percentage of those affected went up from 21% to 35% is an indication of a special issue for young people today. The hon. Gentleman will know that through his own constituency, as I do through mine. Does he agree that young people’s mental health must be a priority and that we must focus on them to ensure that they get the employment and the purpose in life that they need?

[Mr Snowden]

Speaking of badges of honour, it is always a badge of honour to be intervened on by the hon. Member for Strangford (Jim Shannon). I totally agree with his point.

The figures that I just referred to are stark. Youth unemployment reached 15.6% in the first quarter of this year—that is 715,000 young people and 139,000 more than when this Labour Government came to office. Almost a million young people—981,000—are not in education, employment or training. Our youth unemployment rate is now higher than that of Hungary, Slovenia and Bulgaria. Perhaps the most telling finding of all is that six in 10 young people without a job have never worked. For them, this is not about getting back into work; it is about getting a start in the first place.

The Opposition welcome the review and recognise much of its diagnosis. Work is not just a wage; it brings structure, confidence and purpose. Prolonged unemployment early in life leaves a scar on earnings, health and life chances that can last for decades. In Government, the Conservatives understood that. It was a Conservative Government that introduced the kickstart scheme during the pandemic, helping more than 150,000 young people into paid work. It was a Conservative Government that introduced the apprenticeship levy and supported millions of apprenticeship starts. We acted because we knew that the first job matters most. It teaches the value of punctuality and the necessity of taking instructions and it builds social skills in a personal setting.

Since the election, this Government have had more than two years to get to grips with post-covid youth unemployment and the rising cost of welfare. Instead, we have seen a culture of dither, delay and U-turn.

[Charlie Maynard (Witney) (LD)]

Does the hon. Member agree that making it easier for young people to get functional skills qualifications, rather than being stuck in an endless cycle of resits, would allow them to get those qualifications and then on to an apprenticeship and into work, exactly as those at the Aspire youth hub in Witney do so well?

[Mr Snowden]

Tailored support is something that I will come on to shortly.

Worse still, the Government’s own choices have made the problem harder. The rise in employer national insurance and the new burdens of the Employment Rights Act 2025 have made it more expensive and risky to take a chance on a young person. The Government cannot tax the first rung of the ladder and then express surprise that fewer young people are climbing it.

At the same time, spending on personal independence payments for 16 to 24-year-olds has risen from £1.3 billion to £3.2 billion in five years. Some 45% of young people who are NEET now report a disability, and of those who fall out of work or study through ill health, eight in 10 are still NEET two years later. New analysis from the TaxPayers’ Alliance shows just how deep that runs. In April this year, more than two thirds of universal credit claimants in their twenties—some 870,000 young people—were not in work. In just two years PIP claims rose by almost a quarter among 20 to 29-year-olds and by nearly as much among 16 to 19-year-olds. These are not numbers to be managed; they are young lives being put on hold.

The Minister for Social Security and Disability at the DWP has told us that PIP is “not fit for purpose” yet he also said that the current level of spending is not “of great concern.” The House is entitled to know which of those statements accurately reflects the Government’s position. Nor is it reassuring that the Secretary of State for Work and Pensions is reported to have written to Peter Mandelson:

“Every meeting I have is ‘who can we tax in order to pay benefits to others’”.

All of this raises some simple but urgent questions for this Government that I would like to put to the Minister. First, will she confirm exactly when Milburn’s final report will be published and when the Government will respond to it in full? Will the Minister also explain why neither the Milburn review nor the Timms review was allowed to report before the Budget? Secondly, will she set out precisely how those two reviews will be brought together? Will there be a single package of welfare reform and when will it come before the House? Thirdly, does the Minister accept that the rise in employer national insurance has reduced entry-level hiring?

[Alex McIntyre]

I wonder if the hon. Gentleman might remind the House how much employer national insurance contributions are for an under 21-year-old earning less than £50,000 a year.

[Mr Snowden]

That is precisely why the Conservative party has pledged to reduce them by 50% to take them down even further.

[Alex McIntyre]

Fifty per cent of nothing is still nothing.

[Mr Snowden]

We are talking about 21 to 24-year-olds.

Fourthly, on the youth guarantee and youth jobs grant, how many young people have actually started a job so far? What is the cost per place and how many remain in unsubsidised work once the subsidy ends? Fifthly, how many apprenticeship starts have there been for those aged 25 since the growth skills levy replaced the apprenticeship levy and how does that compare with the year before?

Finally, will the Government at last accept the offer made by the Leader of the Opposition, repeated at Prime Minister’s questions in June, to work with us on serious welfare reform? That offer stands because we have a plan. Our get to work scheme rests on a simple principle: no young person who can work should leave education and drift straight on to benefits. Every young person would have a dedicated get to work manager and work requirements from day one. It would cost a net £303 million, paid for by streamlining existing employment schemes and as part of the broader £36 billion of welfare savings set out by the shadow Work and Pensions Secretary, my hon. Friend the Member for Faversham and Mid Kent (Helen Whately).

We all share the objective of giving every young person the dignity and opportunity of work, but good intentions are not good enough and another review is not a plan. A working age welfare bill of £911 billion in a single Parliament is not the mark of a system that works; it is the mark of one that is failing both the young people trapped in it and the working families who pay for it. I press the Government for straight answers today: when will they act, how will they pay for it and how will they measure success?

10:42

[The Parliamentary Under-Secretary of State for Work and Pensions (Lilian Greenwood)]

As ever, it is a pleasure to see you in the Chair, Ms McVey. I congratulate my hon. Friend the Member for Wrexham (Andrew Ranger) on securing this important debate. I know that he has paid significant attention to the NEET crisis, and as he has rightly said before, this cannot be treated as just another political issue. It is one of the most serious social and economic challenges facing the country, as is clear from the fact that 20 Back-Bench Members have spoken in this debate—it is just disappointing that the official Opposition spokesperson, the hon. Member for Fylde (Mr Snowden), is the only representative of his party here.

This challenge requires Government, business and others, including the third sector, to come together to tackle it and to treat doing so as a national cause—a moral mission, as my hon. Friend the Member for Wrexham said. It is for those reasons that the Government commissioned Alan Milburn’s independent report. We asked him to get under the bonnet of this issue and look across the piece at the deep-rooted causes of long-term trends that have led to almost 1 million young people being stuck on the sidelines, not in education, employment or training—I gently remind the Opposition spokesperson that that number rose by 250,000 between 2021 and 2024, and that youth apprenticeship starts fell by 40% over a decade. Those are young people with talent, ambition and potential who, for too long, have not had the opportunities or support they need to succeed.

As the interim report makes clear, the challenge goes deeper than that headline figure. Around 60% of young people who are NEET are economically inactive, and six in 10 have never had a job. This Government will not accept a generation being left behind. We recognise that there is no single cause of rising economic inactivity among young people. Poor physical and mental health, disengagement from education, a lack of qualifications, limited work experience and difficulty navigating a changing labour market can all play a part. That is why our response must be comprehensive and co-ordinated across education, health, welfare, skills, employers and employment services. Alan Milburn’s final report and recommendations are coming soon, but this Government are already taking action.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

The Minister listed some of the drivers of the problem, one of which, as many Members mentioned, is transport links, particularly for people in rural communities. As she will remember, the Transport Committee recommended that to help solve the problem, the Government should look seriously at Scotland and institute free bus travel for young people in England. Will the Government look at that again?

[Lilian Greenwood]

I agree with my hon. Friend that provision of affordable and convenient transport is vital. I shall leave that to my colleagues in the Department for Transport.

At the heart of the Government’s current approach is the youth guarantee, which will be backed by an additional £2.5 billion by 2029, alongside investment in the growth and skills levy. Together, that funding will support almost 1 million young people and create up to 500,000 opportunities to earn or learn. We are strengthening support at every stage of a young person’s journey, and through an expanded network of youth hubs and the youth guarantee gateway, young people will receive earlier and more intensive support.

We owe young people that support. As my hon. Friend the Member for York Central (Rachael Maskell) said, this generation has faced, and is facing, a unique combination of challenges. They are not to blame for their predicament; it is the system that has failed them. As many hon. Members have said, the interim Milburn report found that 84% of NEET young people want to find a job, education or training—and I agree that we need to find a better acronym. The will is there, but it needs to be matched by support and opportunities. We are giving employers practical incentives to create those, including the £3,000 youth jobs grant and a £2,000 apprenticeship hiring payment. Also, I remind all hon. Members that employers pay zero national insurance on employees who are under the age of 21 and earn less than £50,000.

Our wider reform of employment support also matters. The new jobs and careers service will bring together employment, skills and career support, with stronger links between employers, local areas and people looking for work. The objective is simple: to have a service focused not on processing people, but on helping them to find work, build skills and progress. Personalised support will be at the heart of our approach, to help people to access the support that best meets their needs. We have launched new digital tools, expanded community-based delivery and strengthened our employer offer.

We are also increasing access to work experience and training, which will play a critical role in breaking that age-old cycle—no experience, no job; and no job, no experience. My hon. Friend the Member for Paisley and Renfrewshire South (Johanna Baxter) got her first chance at a vet’s, and my Saturday job was at the newly opened Superdrug in Bolton. Such opportunities help us to learn what work is like, but far too many young people have not been getting them. Therefore, as my hon. Friend the Member for North West Leicestershire (Amanda Hack) highlighted, work experience is as important as, if not more important than, ever.

However, where unemployment becomes entrenched, we must go further. That is why the jobs guarantee will offer eligible 18 to 24-year-olds who have been claiming universal credit and looking for work for 18 months a fully subsidised, six-month paid job. That offer is already changing lives for the better. In August, the Secretary of State came to Boots in Nottingham to meet young people who are benefiting from the jobs guarantee. He spoke about how remarkable it was to see the transformation in their self-belief, confidence and hope for the future. We are going to see more of that. Following the first phase of the programme, national roll-out will begin this month across 25 areas. The programme is expected to support more than 90,000 young people over the next three years.

Crucially, we are also extending that opportunity to eligible young disabled people and young people with long-term health conditions. The hon. Member for Horsham (John Milne) will be pleased to hear that from April 2027, eligible young people receiving health-related benefits can voluntarily take up that offer shortly after their work capability assessments. They are going to the front of the queue, because nobody should be written off because of their health. Through programmes including Connect to Work, WorkWell, Access to Work and disability employment advisers, we are bringing employment and health support closer together. Our approach recognises that different people face different combinations of barriers and that we must see people in the round and take a joined-up approach to how we offer support.

We also know that we cannot solve this challenge only when a young person walks through the jobcentre door. Prevention must begin much earlier. There is a strong relationship, as hon. Members have said, between disengagement from school and becoming NEET later in life. That is why improving attendance is fundamental to our approach. We have set a national ambition to increase school attendance to over 94% by 2028-29, and we are supporting schools through clearer expectations, better data and new RISE—regional improvement for standards and excellence—attendance and behaviour hubs. Alongside those actions, we are fixing the broken SEND system and reforming careers provision so that young people have greater exposure to the workplace before they leave education.

I mentioned earlier how crucial work experience is. That is why our ambition is for every young person to receive two weeks of meaningful workplace experience during secondary school, building progressively through key stages 3 and 4. There are 44 careers hubs supporting that work, while additional provision is targeted towards young people who face the greatest barriers.

[Gareth Snell]

The aspiration of work experience is laudable, but the guidance that came out in the recent keeping children safe in education update now requires, if a young person will be spending more than three days in a workplace, that workplace to undergo a Disclosure and Barring Service check, as part of its being an unregulated activity. That is a significant barrier for many small businesses, particularly those that have previously hosted young people, but now have to go through the burden of getting a check. Could the Minister take that back to the Department and work with the Department for Education to find a way of ironing out that kink, so that we keep children safe but do not preclude the opportunities they previously had?

[Lilian Greenwood]

I can assure my hon. Friend that we are aware of that issue and we are setting about addressing it.

Alongside all those measures, we are reforming post-16 education so that young people can have clearer academic, technical and vocational routes. We are transforming the apprenticeship levy, backed by an additional £1 billion, supporting 50,000 more young people into apprenticeships. New foundation apprenticeships, fully funded apprenticeships for eligible under-25s and additional support for employers will all create more routes into skilled employment. As my hon. Friend the Member for Bracknell (Peter Swallow) rightly said, the skills needs are changing in the world of AI.

These reforms represent significant action, but we recognise that the Government must continue to listen and learn. Alan Milburn’s interim report set out starkly the scale and complexity of the participation challenge facing this generation. Our ambition is straightforward: wherever a young person starts from, whatever barriers they face, they should have a genuine route into education, training or good work. I hope that reassures my hon. Friend the Member for Stoke-on-Trent Central.

Achieving that ambition means intervening earlier and joining up services across departmental boundaries, as my hon. Friend the Member for Birmingham Selly Oak (Al Carns) said. It means working with employers, colleges and local organisations such as those highlighted by many hon. Members, including Saints Works in Southampton, the Spear Programme in York and Making It in Aylesbury, because, as my hon. Friend the Member for Southport (Patrick Hurley) said, place-based solutions show great results. It also means refusing to accept that any young person is destined to remain outside opportunity. I should have said that it also means better public transport, especially in rural areas, as my hon. Friend the Member for Hexham (Joe Morris) and my hon. Friend the Member for Derbyshire Dales (John Whitby) emphasised.

[Dr Danny Chambers (Winchester) (LD)]

It is worth noting that 13% of NEETs are university graduates. I meet many people who have just graduated with good degrees from good universities, who are applying for more than 300 jobs and not even getting a response. There is very little talk about support for graduates, and we are disappointed that in the Budget there was no mention of reforming the student loan system that is adding pressure on them. Will the Minister assure us that the Government are looking at the student loan system?

[Lilian Greenwood]

I can assure the hon. Member that we are considering the issues for graduates, as well as for younger people leaving school with lower-level qualifications.

Tackling the NEET challenge is not only an economic imperative, important as that is; it is about fairness, aspiration and ensuring that every young person has the chance to build a better future. We look forward to the publication of the final “Young People and work” report in the coming weeks. Its findings will provide an important opportunity to consider what more must be done to address the challenges facing young people today, and to ensure that every young person has the opportunity to participate, to progress and to thrive.

10:55

[Andrew Ranger]

I thank all hon. Members for coming today, for their valuable contributions and for sharing their experiences and the work going on in their areas. Doing that is vital, because we can all learn from one another and take this mission forward. I also thank my hon. Friend the Minister and the spokespeople from the other parties, the hon. Member for St Neots and Mid Cambridgeshire (Ian Sollom) and the hon. Member for Fylde (Mr Snowden), for their responses.

The number of people contributing today shows how important this issue is across the UK. We are at an important moment, because the publication of the final Milburn report is coming up. How we respond here is vital; it will define our country and our legacy here for many years into the future. It will need all of us to fix this issue, and I hope that we can work across the House and beyond to do that. It is clear, from everyone’s contributions here today, that we need a whole-system approach, covering transport, the economic approach, early intervention, local design and delivery, and so many other things that hon. Members have mentioned. Once again, I thank them all for contributing to today’s debate, and thank you, Ms McVey.

Question put and agreed to.

Resolved,

That this House has considered the findings of the Milburn Review into Young people and work: interim report, published on 28 May 2026.

10:56

Sitting suspended.