'Shameful' more spent on benefits than jobs for young people, says Milburn

Alan Milburn has warned that Britain spends far more keeping young people on benefits than helping them into work, as ministers prepare to expand youth training and work experience schemes.

Former health secretary Alan Milburn has called for major welfare reform, warning that Britain is spending far more money keeping young people on benefits than helping them into work.

Speaking on the BBC’s Sunday with Laura Kuenssberg programme, Milburn said it was “shameful” that for every £25 spent supporting young people on benefits, only £1 is spent helping them move into employment through dedicated employment support.

His comments come amid growing concern about the number of young people who are not in education, employment or training.

The latest Office for National Statistics figures estimate that 957,000 people aged 16 to 24 were not in education, employment or training in October to December 2025. That was up from 946,000 in the previous quarter.

For Cheshire families, colleges and employers, the issue is not distant. Young people struggling to find their first job, apprenticeship or training route affects local businesses, household finances and the long-term strength of the regional economy.

Milburn is leading an independent investigation into rising youth inactivity. The government launched the review last year, saying it would examine why increasing numbers of young people are falling out of work or education before their careers have properly begun.

The review is looking particularly at the impact of mental health conditions, disability, education, skills, employment support and the welfare system. Government figures published when the review was launched said nearly one million young people were NEET, with more than a quarter citing long-term sickness or disability as a barrier to participation.

Milburn’s argument is that the current system is too focused on managing young people once they are already outside work or education, rather than helping them gain skills, confidence and experience earlier.

That matters because early work experience can shape a person’s future earnings, confidence and career path. A young person who misses the first step into employment can find it harder to compete later, especially if they have no recent experience, no references and no clear route into training.

Ministers are now preparing to expand work experience and training schemes. Work and Pensions Secretary Pat McFadden is expected to set out plans for 300,000 extra work experience placements over the next three years, alongside expanded sector-based work academy programmes.

Sector-based work academy programmes, often known as SWAPs, are short training schemes designed with employers. They usually combine pre-employment training with work experience and a guaranteed job interview at the end.

According to reporting on the government plans, around half of the extra opportunities will come through these programmes. DWP analysis cited in the coverage suggests young people taking part in SWAPs are more likely to be in work two years later than similar young people who did not take part.

For Cheshire, the policy could matter in sectors where employers often report skills gaps, including construction, care, hospitality, logistics, retail, manufacturing and digital support roles.

Local employers frequently say they need reliable entry-level workers but struggle to find candidates with basic workplace confidence, punctuality, communication skills and practical experience. Young people, meanwhile, often face the opposite problem: they cannot get experience because they have not already had a job.

That “no job without experience, no experience without a job” problem is one of the central challenges behind the youth employment debate.

The government has also previously set out plans for a Youth Guarantee, expanded youth hubs, more workplace opportunities and a job guarantee for some young people on Universal Credit. A parliamentary statement in December said the package included up to 150,000 additional work experience placements and up to 145,000 additional bespoke training opportunities through SWAPs.

Supporters of reform argue that more practical routes into work are needed, especially for young people who may not want to follow a university route or who need help rebuilding confidence after time out of education.

Apprenticeships, work trials, short training courses and employer-led placements can give young people a clearer route into work than simply applying for jobs online and receiving no response.

But the challenge is not only about young people. Employers also need incentives, support and confidence to take on inexperienced workers.

Small businesses in Cheshire may be willing to train younger staff, but many are dealing with higher wage costs, business rates, energy bills and tighter margins. Without support, some may be reluctant to hire someone who needs more supervision in the early stages.

That is why any serious youth employment plan needs to work for both sides: young people need support into work, and employers need a system that makes taking them on realistic.

There is also a health dimension. Milburn has pointed to rising levels of mental distress, anxiety and neurodiversity among young people. He has argued that these issues are real, but should not automatically mean a young person is written off from work or training.

That is a difficult balance. Young people with health conditions need proper support, not pressure without help. But if the system simply moves them onto long-term benefits without offering routes back into education, training or suitable employment, the risk is that too many are left behind permanently.

For Cheshire Today readers, the practical question is what this means locally.

If the expanded schemes work, more young people could access placements with real employers, gain interview experience and move into jobs in sectors that need staff. If they fail, the number of young people outside work and education could remain stubbornly high, leaving families, taxpayers and local economies carrying the cost.

The debate is likely to continue as Milburn’s review develops and ministers set out further welfare and employment reforms.

The core message is clear: Britain is spending heavily on the consequences of youth inactivity. The harder task is building a system that helps more young people into work before long-term benefit dependency becomes the default route.

For Cheshire businesses, colleges and councils, the issue will be worth watching closely. The county needs skilled young workers, and young people need credible first steps into employment.

If the government’s plans can connect those two needs, the benefits could be felt not only in national statistics but in local workplaces across Cheshire.

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