Labour's Plan to Cut Youth Unemployment Delayed Until After Budget

A comprehensive report detailing strategies to reduce the number of young people not in education, employment, or training (NEETs) is expected to be released after the upcoming Budget, according to reports. Alan Milburn, former Labour health secretary and reviewer of the welfare system, was commissioned by former Prime Minister Keir Starmer to examine youth unemployment.

The report's recommendations are now anticipated in November, rather than before the October 28 Budget. This delay is reportedly due to concerns over the potential costs associated with the welfare overhaul proposed in the review, which may require significant upfront investment and is not projected to yield savings until the end of the decade.

"If we're going to put in more support for young people... of course we're going to have to invest behind that. That absolutely has to happen," Milburn told the Financial Times last month.

The number of NEETs currently stands at approximately one million. Andy Burnham, who replaced Starmer as Prime Minister, has stated his commitment to reducing this figure.

Despite reports of a delay, a Whitehall source expressed confusion, noting that the Department for Work and Pensions had not set a definitive publication date for the review. The Department for Work and Pensions stated that the Milburn review will be published this autumn as planned, adding that the government will respond to the final report in due course.

This review is not the only government assessment of the welfare system on the horizon. Social security minister Stephen Timms is also preparing to release his review of Personal Independence Payment (PIP), a key disability benefit. The number of PIP claimants has reached a record high, with 4.09 million people entitled to the benefit as of July. PIP is intended to assist with daily living costs for those with long-term health conditions or disabilities and is not means-tested. Spending on PIP has risen substantially, from £16.3 billion in 2019-20 to an estimated £27.3 billion in 2024-25, with projections indicating a further increase to £41.5 billion by 2030-31.