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Today’s report on Neets - young people not in education, employment or training - is stark.
Alan Milburn, the former Labour health secretary, says one in six 16-24 year olds could end up in that category without action. In fact, a report today says the number has already reached more than one million. He is arguing that this is a “moral crisis” and warns of a potential “lost generation”.
Today’s report is about diagnosing a problem. There will be a full report later in the year with some potential solutions. But Milburn has also conceded that many employers have raised government policy as a problem - namely the increase in the youth minimum wage and employer National Insurance contributions.
Milburn told me he would make it loud and clear to the chancellor that ministers should be minimising risks and maximising incentives to take on young people.
But he also warns this is a much bigger problem - with a “system reset” needed. There are, he added, no easy solutions.
There is no doubt this is an issue the government - whoever leads it - is going to have to address. Milburn is trying to turn this issue into a central “cause” for UK politicians.
The essential: A government commissioned report is warning about the impact of Neets - saying it could already be costing the economy £125bn a year. He is calling for a radical rethink, but will deliver firmer conclusions later in the year.
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