Ministers should cut welfare spending to fund more employment support if it wants to end the youth Neet crisis, the author of a government-led review has said. Alan Milburn, the Tony Blair-era health secretary, told the Guardian he believed ministers should reduce benefits payments to help pay for more employment support, opening a potentially contentious debate within the Labour party over welfare cuts. His intervention comes in the run-up to John Healey’s first budget, at which the chancellor is under pressure to explain how he will reduce a multibillion-pound black hole in the country’s finances and pay for more cost of living support without increasing borrowing.
The former cabinet minister said this was far more than a cyclical youth unemployment problem – it was a “youth detachment” problem, pointing to the fact that 60% of these Neets have never had a job. Ministers have pushed back Milburn’s final report until after the budget, at which Healey is expected to use a tax raid on banks to help pay for cost of living schemes such as a new energy support package. The chancellor has signalled his willingness to spend more money on youth unemployment programmes in the short term, however, even if the welfare savings take longer to be realised.
He announced a £100m “local apprenticeship service” at last month’s Labour conference, calling it “a downpayment on Alan Milburn’s work”. In a joint interview with Peter Fonagy, the chair of the government’s landmark independent review of mental health, ADHD and autism, Milburn said his final recommendations were not just about tackling youth unemployment but also improving wellbeing. Non-participation is a disaster for young people’s mental health.” Milburn’s review is likely to recommend that employment, health and benefits support become more integrated.
It recommended providing help at the point of need, not after a diagnosis. While there will always be a group of young people whose physical or mental health mean work is not an option, “for the vast majority of young people with autism, ADHD, anxiety or depression, the starting point has to be what could you do, what would you like to do, and how can the state help them do it,” Milburn said. Young people with health needs should get prompt needs assessment, a personalised health plan and a wider “participation plan”, the review is likely to recommend.
The kind of transformation Milburn and Fonagy describe would cost hundreds of millions of pounds in investment, sources believe. While they would not comment on the level of funding required, both were clear that upfront money would be crucial. You’ve got to increase the opportunities that are available for young people and then provide the support for them to enable them to grab those opportunities.” “This is not a workshy, snowflake generation, you know, who are making mental distress up,” Milburn added.
The system isn’t delivering what young people want, which is a job.” But Milburn also hinted at possible consequences for those who don’t engage. The problem with the system was that it was “over-indexed to cash” and didn’t provide enough support, he added.
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