What is the NEET crisis in the UK?

The NEET crisis refers to the record number of UK 16-24-year-olds Not in Education, Employment or Training. ONS figures for January-March 2026 show 1.01 million young people are NEET - 13.5% of the age group and the highest since 2013. Nearly 60% are economically inactive.

What is the Alan Milburn NEET report?

The Milburn report - officially the 'Young People and Work' interim report published in May 2026 - is an independent review chaired by Alan Milburn. It warns of a 'lost generation', projects NEETs could hit 1.25 million by the early 2030s, and criticises the welfare system for exacerbating inactivity. The UK now has the third-highest NEET rate among rich European countries.

Why are so many young people becoming NEET?

The Milburn review points to rising mental-health issues since the pandemic, a shrinking entry-level job market, a collapse in under-19 apprenticeships, weak careers advice, a welfare system that traps young people in inactivity, and a widening skills gap in creativity, communication, problem-solving and financial literacy.

How does enterprise education help reduce NEET numbers?

Enterprise education gives young people the mindset and practical skills to spot opportunities, earn money and build confidence outside traditional employment routes. Young Enterprise research shows participants are more likely to be in work, education or training a year after leaving school and three times more likely to consider self-employment.

What can parents do if they have a NEET teenager?

Start with low-pressure small wins. Introduce free tools that let a teen test a business idea or side hustle without needing a CV. Focus on rebuilding confidence and one transferable skill at a time. Practical starting points: We Can Be's AI Idea Machine, 'how to make money as a teenager in the UK' guide, and 200+ British female founder role models.

How can schools respond to the NEET crisis?

Schools can run Entrepreneur Days, embed enterprise into KS3 and KS4, strengthen PSHE-linked financial literacy, and use ready-made lesson plans that free up teacher time. We Can Be's Educator Hub provides curriculum-aligned resources for ages 6-18.

The NEET Crisis Explained: What Alan Milburn's Report Means for UK Young People (2026)

By Kim Loudon · 3 July 2026 · 12 min read · Category: For Educators

More than 1.01 million UK 16-24-year-olds are Not in Education, Employment or Training (NEET) - 13.5% of the age group and the highest level since 2013 (ONS, January-March 2026). Nearly 60% are economically inactive. Former Labour cabinet minister Alan Milburn's independent 'Young People and Work' interim report, published in May 2026, warns of a 'lost generation' and projects NEET numbers could reach 1.25 million by the early 2030s. The UK now has the third-highest NEET rate among rich European countries.

What NEET means

NEET stands for Not in Education, Employment or Training and usually refers to 16-24-year-olds in the UK. It covers both unemployed young people looking for work and economically inactive young people who are not looking - the latter is now the majority and the focus of the Milburn report.

Inside the Milburn report

Key findings: risk of a 'lost generation'; youth detachment rather than cyclical unemployment; the welfare system is 'exacerbating inactivity'; careers education and enterprise skills gaps; sharp regional divides in the North, Midlands and coastal towns.

Why the crisis is happening

Post-pandemic mental health, a shrinking entry-level labour market, the collapse of under-19 apprenticeships since Levy reforms, patchy careers advice (three in four young people don't feel confident in essential skills - Skills Builder UK), and a widening confidence gap.

The enterprise education response

Enterprise education builds confidence, financial literacy, self-employment as a viable route, exposure to real role models, employability signals, and curriculum-aligned skills. Young people who take part are 3x more likely to consider self-employment (Young Enterprise).

What parents, teachers and young people can do

Parents: start with a first £5, not a CV. Try the AI Idea Machine and read 'how to make money as a teenager in the UK'. Teachers: run Entrepreneur Days, embed enterprise into KS3/KS4, use ready-made lesson plans. Young people: pick one tiny thing to make or sell this month; use free tools; talk to Blaze the AI business coach.

Further UK resources

The full Milburn report is on GOV.UK. Additional support: Young Enterprise, Skills Builder UK, National Careers Service, The Mix (mental health for under-25s). Browse our vetted UK resources library for coding, financial literacy, STEM and enterprise platforms.