Young adults residing with their parents face reduced motivation to enter the workforce, according to Labour’s jobs tsar Alan Milburn. Recent data reveals 957,000 individuals aged 16 to 24 are not in education, employment, or training (NEET), edging closer to one million.
Rising NEET and Unemployment Figures
The Office for National Statistics reports that NEET numbers climbed to 957,000 in the final quarter of 2025, up from 946,000 in the prior period. This surge fuels concerns over a potential ‘lost generation’ among youth.
Youth unemployment currently stands at a record 16.1 percent, while the overall rate reaches 5.2 percent—the highest in five years. NEET figures have remained above 900,000 since Labour took office and have not exceeded one million since 2013.
Milburn Highlights Family Living Impact
Leading a government review on youth unemployment, Milburn addressed the trend during a Times Radio interview. He noted that staying in the ‘house of mum and dad’ contributes to lower employment rates.
‘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,’ Milburn 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 securing decent jobs, homeownership, social media influences, and the impending AI revolution as key factors.
Policy Effects and Hiring Challenges
Milburn acknowledged that recent employer national insurance hikes and minimum wage increases for under-21s complicate youth hiring. ‘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 increases to £12.71. Plans to align these into a single adult rate face potential delays due to youth unemployment concerns.
Criticism from Opponents and Experts
Tory business spokesman Andrew Griffith called the situation ‘astonishingly complacent,’ warning of a ‘lost generation we can ill afford’ as NEETs approach one million.
Reform UK’s education spokeswoman Suella Braverman labeled the figures a ‘damning indictment’ of policies favoring university over vocational training and apprenticeships, leaving graduates with crippling debt.
The Resolution Foundation urges pausing further youth minimum wage alignments until unemployment declines, noting Britain nears one million NEETs for the first time in 13 years.
Former Pizza Express boss Hugh Osmond highlighted employment as the UK’s top concern, attributing declines to national insurance changes and wage policies.
Consumer Confidence Slumps
New GfK data shows consumer confidence dropping amid fewer entry-level jobs. Neil Bellamy, consumer insights director at GfK, explained: ‘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.’
