The Rest Is Politics
Episode overview

How to Solve Britain’s Youth Unemployment Crisis

The Rest Is Politics · 15 October 2026 · 57m · 5 Egleze moments
How to Solve Britain’s Youth Unemployment Crisis ▶

What happened in this episode?

Rory Stewart and Alastair Campbell host a listener Q&A with Alan Milburn, the former Labour cabinet minister leading an independent review for Andy Burnham’s government on the rising number of 16–24 year-olds not in education, employment or training (NEET). Milburn argues the problem is increasingly “youth detachment” rather than short-term unemployment, with many young people having never worked. He links the trend to mental ill-health, changing labour markets and what he describes as a welfare system that prioritises income support over sustained help into work.

Milburn draws contrasts with countries such as the Netherlands, saying Dutch systems normalise work alongside study and embed work experience more systematically, while the UK’s approach is often ad hoc and shaped by family connections. He discusses anxiety about AI in recruitment and job loss, suggesting government is behind the pace of change and should examine whether public money supports firms whose AI practices reduce young people’s opportunities.

A major thread is welfare design for under-25s. Milburn criticises what he calls binary fitness-for-work assessments and claims that young people on health-related benefits can become stuck for years. He says his forthcoming report will propose “fundamental” reforms across welfare, education, skills, health and labour-market policy, aiming to shift the welfare state towards participation and a “springboard” model. He also describes political risks: maintaining momentum over a decade, securing employer and local authority buy-in, and finding resources in a tight fiscal environment.

What are the key points?

Who is speaking?

Named speakers identified in Egleze's source-linked moments from this episode.

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Programme
The Rest Is Politics
Published
15 October 2026
Duration
57m
Original episode
Open the original source ↗

Egleze verifies the speaker, source and timestamp for each linked moment. Unless a moment is explicitly marked independently verified, statements remain attributed claims by the named speaker rather than established facts.

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5 moments from this episode

Source-linked · editorially selected
01
Politics

Milburn warns young benefit claimants can stay out of work for years

Alan Milburn · at 17:46 · Attributed speaker claim
If you get a health and disability benefit today as a young person, you stand a 50% chance in 15 years time of still being on that benefit, still being unemployed.

Alan Milburn argues that some young people who move onto health and disability benefits while awaiting diagnosis and treatment can struggle to return to work. He cites a figure he says suggests a 50% chance a young claimant will still be on the benefit and unemployed 15 years later.

02
Politics

Milburn says review puts annual cost of youth worklessness at £125bn

Alan Milburn · at 22:23 · Attributed speaker claim
So we estimate in our first report that the drag on Britain's economy in terms of growth amounts to about 125 billion quid a year from not having these young people in work.

Alan Milburn says his review’s first report estimates UK growth is held back by about £125bn a year because some young people are out of work. He argues investment in human capital should be treated as a long-term priority alongside infrastructure and technology spending.

03
Politics

Alan Milburn claims 25-to-1 spending gap between youth benefits and work support

Alan Milburn · at 28:14 · Attributed speaker claim
What we're doing is we're spending for every 25 quid that we spend on giving income support to young people on benefits, we're spending a pound on employment support.

Alan Milburn says the state spends £25 on benefits for young people for every £1 on employment support. He argues this imbalance makes welfare more of a safety net than a springboard into work or training.

04
Politics

Milburn predicts review will propose major welfare changes for under-25s

Alan Milburn · at 35:40 · Attributed speaker claim
We will be bringing a fundamental change and reform of the welfare system for the under 25s to the government just as we'll be doing that in the education system, the skills system, the health system, and in labor market policy.

Alan Milburn says his team will submit proposals to government for what he calls fundamental welfare reform for under-25s, alongside recommendations on education, skills, health and labour-market policy. He argues the aim is to improve young people’s life chances, even if benefit spending falls over time.

05
Politics

Alan Milburn warns young people receiving PIP could ‘quadruple’ by 2037 without reform

Alan Milburn · at 37:17 · Attributed speaker claim
if we're not careful on PIP alone, the numbers of young people getting PIP are going to quadruple over the course of 25 years to the year 2037.

Alan Milburn says that, on current trends, the number of young people receiving Personal Independence Payment (PIP) could quadruple by 2037. He raises the projection while arguing the welfare system should be redesigned to provide more structured support for participation in work or training for those able to do so.