Government to empower local areas in youth employment drive

Combined and local authorities will be allocated government funding to facilitate job placements for young people within their communities. The Treasury hopes this initiative will ultimately reduce the nation’s welfare expenditure.

The report follows a review highlighting a youth unemployment crisis costing Britain £125 billion annually. The number of young people not in work or education (NEET) has surpassed 1 million, a figure not seen since 2013.

Milburn, a former Labour health minister, described the statistic as a “scar on the country” and warned of a potential “lost generation” if decisive action isn’t taken. He dismissed the notion that young people lack motivation, stating, “The story of not trying, being soft, being a snowflake generation – I just don’t buy it.” Instead, he emphasized that the current system is failing many young people, with opportunities diminishing.

The review is expected to outline a national framework, potentially including a youth guarantee model ensuring all young people are offered a job, training, or apprenticeship, contingent on their engagement with available support. Local leaders will be responsible for implementing these plans, with Milburn playing a role in a central taskforce to monitor progress.

A government source indicated that while initial costs will be substantial, the belief is that local leaders are best positioned to understand and address the specific challenges in their areas.

The report is also expected to propose revisions to career guidance in schools, with teachers assisting teenagers in planning their career paths from age 14.

Shadow Chancellor John Healey has characterized the NEET crisis as a “moral shame,” expressing concern over the lack of opportunities for young people. He avoided commenting on Labour’s pledge to equalize minimum wage rates for younger workers by the next election, stating that the party will proceed “one step at a time.”