The number of young people neither working nor learning has jumped beyond one million for the first time since 2013, official figures have revealed ahead of a review which will warn over fears of a “lost generation”.
In new data published on Thursday, the Office for National Statistics said the number of young people not in work, education or training (Neet) increased to a post-pandemic high of 1.01 million in the three months from January to March.
This is an increase of 89,000 on the previous year and the highest level for more than 12 years.
Elise Rohan, head of labour market output at the ONS, said the increase “was driven by greater numbers of young people no longer looking for work.”
It comes ahead of the publication of Alan Milburn‘s review into the issue, which is set to warn that without urgent action, the number of young people who are neet – not in education, employment, or training – will rise from 1 in 8 to 1 in 6 young people by 2031, affecting 1.25 million young people.
The former Labour health secretary argued that Britain is “at risk of a lost generation” if ministers fail to urgently tackle youth unemployment, admitting that the problem is “much worse” than he initially thought and called for a cross-party effort to find a solution.
Warning that the first rung of the career ladder has “thinned”, the review found first jobs or work experience is often now out of reach for many young people, keeping them in a “hopeless Catch-22”.
Pointing to the sharp decline of entry level jobs in the UK, the report says there are 1.6 million fewer low and medium skilled jobs in the economy.
It also exposes a fundamental imbalance in how public money is spent. In 2024/25, for every £1 spent on employment support for young people, around £25 was spent on benefits.
Asked whether he thinks the government should do more to slash the benefits bill, Mr Milburn told the BBC: “I think we should be paying out less in the benefits bill overall, but the way to do that is not by some arbitrary cut, the way to do it is to get young people into work.”
He added: “For young people who’ve never been in work, the benefits system can’t just be a safety net. It’s got to be a springboard. It’s got to provide more opportunities for people to get work experience, to get a first taste of a job.”
Speaking about how to solve the crisis, Mr Milburn continued: “Whether it’s Labour or Tory or Reform, I’m not really bothered. Honestly, what we can’t do is put a whole generation at risk, and that means a whole system effort.”
The former Labour health secretary also backed calls by Sir Tony Blair for the government to review policies which he said had made it harder for employers to hire younger people – including an increase to the minimum wage and workers rights bill – saying “there is no doubt that these changes have had an impact”.
“If the priority is to create young people’s jobs, then it’s got to create the right conditions for employers to do so”, he added.
Speaking about the latest data, Ms Rohan said: “The number of young people not in employment, education or training rose above one million in the first quarter of 2026, to its highest level in more than 12 years. This was driven by greater numbers of young people no longer looking for work.”
Meanwhile, Tory shadow work and pensions secretary Helen Whately warned that “something has gone badly wrong for a generation of young people”.
“The opportunities that previous generations took for granted are not there in the way they once were”, she said. “Low-skilled mass immigration, the emergence of new technologies, a record tax burden, and perverse welfare incentives all need to be addressed urgently, before the damage becomes permanent. Sadly, Labour are too busy arguing among themselves rather than fixing the country’s problems.”
Ms Whately added: “The Conservatives will back businesses to create jobs with tax cuts, double apprenticeships, reduce immigration so British young people are not competing for jobs that should be the first rung of their career – and reform welfare so young people are better off in work.”
