Young adults residing with their parents face reduced motivation to enter the workforce, according to Alan Milburn, who leads a government review on youth unemployment. Recent Office for National Statistics (ONS) data reveals 957,000 individuals aged 16 to 24 classified as not in education, employment, or training (NEET) during the final quarter of 2025, up from 946,000 in the prior period.
Rising Youth Unemployment Trends
This surge fuels concerns over a potential ‘lost generation,’ with youth unemployment hitting a record 16.1 percent. The overall unemployment rate stands at 5.2 percent, the highest in five years. NEET figures have remained above 900,000 since the current government took office and approach levels last seen in 2013.
Alan Milburn Highlights Family Influence
Milburn, a former Labour Cabinet minister, addressed the role of living arrangements in an interview on Times Radio. ‘It strikes me as yes, and I think we, everybody, talks about the Bank of Mum and Dad as well, isn’t it? Sometimes even when kids leave they boomerang around back,’ he stated.
Parents and grandparents express growing anxiety that those in their 20s may not achieve the same success as previous generations. Milburn pointed to fears over job prospects, homeownership, social media impacts, and the impending AI revolution as key factors.
Policy Impacts on Hiring
Milburn acknowledged that recent increases in employer national insurance contributions and minimum wages for under-21s could exacerbate the issue. ‘We’ve got to look at these factors,’ he said. ‘Every time an employer takes on a young person it’s always a risk because they’re unproven.’
From April, the minimum wage for 18- to 20-year-olds rises to £10.85 per hour, while the adult rate reaches £12.71. Plans exist to align these into a single adult rate, though delays are under consideration due to youth employment concerns. The Bank of England’s chief economist recently noted the policies’ negative effects on young workers.
Critics Call for Action
Conservative business spokesman Andrew Griffith described the trends as ‘astonishingly complacent,’ warning of a ‘lost generation we can ill afford.’
Reform UK’s education and skills spokeswoman Suella Braverman labeled the figures a ‘damning indictment’ of policies favoring university education over vocational training, apprenticeships, and skilled trades, which leave graduates with substantial debt.
The Resolution Foundation urged pausing further youth minimum wage alignments until unemployment declines, noting Britain nears a million NEETs for the first time in 13 years. Former Pizza Express boss Hugh Osmond called employment numbers the ‘biggest concern in the UK,’ attributing issues to national insurance hikes and minimum wage policies.
Broader Economic Strain
New GfK data shows consumer confidence slumping amid fewer entry-level jobs. Neil Bellamy, consumer insights director at GfK, stated: ‘With fewer entry-level opportunities available, those on lower incomes are already feeling the strain, and this trend risks undermining the typically more optimistic outlook held by younger age groups.’
