Labour has not succeeded in reducing high youth unemployment and needs a broad system overhaul that includes a new effort to reform health and disability benefits, according to a government-commissioned report. Alan Milburn, who leads a review examining why nearly one million young people are outside education or employment, stated that ministers have so far offered only fragmented job schemes. He described the situation as moving in the wrong direction and called it a catastrophic systems failure. While efforts in education, health, and Labour’s youth guarantee were seen as positive, Milburn criticised the lack of a unified strategy under Keir Starmer. He questioned who is coordinating efforts and stressed the need for mission-based government to ensure every young person has the chance to earn or learn. The interim report, due Thursday, will urge a fresh approach to Britain’s welfare and employment support for young people. Official data expected the same day are projected to show the number of 16- to 24-year-olds not in education, employment or training nearing one million. Britain ranks third highest among wealthy European nations for this rate. Business leaders have linked the rise to a £25bn increase in employers’ national insurance contributions and moves to align minimum wages across age groups. Milburn’s review will examine how schools, skills training, health services, welfare and the labour market can be adjusted to improve youth employment. He called for welfare reform focused on outcomes rather than cost savings and warned against framing changes solely through a fiscal lens. The system must protect those unable to work, yet many young people with health conditions could receive better employment support instead of remaining on benefits, he said.
