Labour's big plan to tackle youth unemployment will increase the cost to the taxpayer before it makes major benefit savings, architect warns

See more Daily Mail on Google - save us as a Preferred Source Published: 08:08 EDT, 11 September 2026 | Updated: 08:16 EDT, 11 September 2026 A major new plan to reduce youth unemployment and the benefits bill will not save any money before the end of the decade and will actually require more taxpayer cash first, its architect has revealed.Ministers have commissioned Blair-era cabinet minister Alan Milburn to come up with recommendations for cutting the number of NEETS – people aged 16-24 not in education, employment or training. An estimated 981,000 people were classified as NEETS between April and June 2026. While this was a slight fall from the more than one million in the first quarter of the year, the figure remains 30,000 higher than in 2025.But in an interview today Mr Milburn signalled that while his plan could save benefit cash by tightening the system, it was going to be 'a 10-year plan for youth participation'.'If we're going to put in more support for young people ... of course we're going to have to invest behind that. That absolutely has to happen,' he told the Financial Times.On a visit to the Netherlands, where the NEET rate is a quarter of the UK's, he said it would not be possible to get to their level 'in two or three years. It just can't,' when asked if the cuts would help balance the budget by 2030. He also floated an idea likely to win support from devolution-supporter Andy Burnham – allowing regional mayors to keep and reinvest money saved from the welfare bill locally where they have helped to get people back into work. Alan Milburn signalled that while his plan could save benefit cash eventually by tightening the system, it was going to be 'a 10-year plan for youth participation He also floated an idea likely to win support from devolution-supporter Andy Burnham - allowing regional mayors to keep and reinvest money saved from the welfare bill'If you're going to rewire the state, you've got to re-plan how money flows,' he said. 'I've always believed that what everybody underestimates is the importance of financial incentives.'It came after new figures suggested Britain's NEETS crisis could be far worse than first thought, with tens of thousands of young people found to be missing from official figures.In a blow to Labour's pledge to get youngsters working, as many as 42,000 16 and 17-year-olds in England are signed up to attend college but are going less than half the time, so are hidden from official figures.This means there could now be nearly double the number of NEETS in this age bracket than first thought, according to new analysis from the Children's Commissioner's office.Unlike schools, absenteeism is not tracked by the Department for Education in further education settings.To fill this gap, Children's Commissioner Dame Rachel de Souza obtained data from 262 of England's 290 college groups giving the first accurate picture of attendance within colleges and training centres.The data revealed 28,528 16 and 17-year-olds were 'severely absent' in Spring 2026, meaning they missed half the sessions they were expected to attend.When tracked across all college groups in England, this saw an estimated 41,995 students disengaged from education yet not appearing in official NEETS figures.Commenting on the findings, former health secretary Mr Milburn, who has been tasked by Labour to review the NEETS crisis, said: 'The fact that colleges have no obligation to report attendance means tens of thousands of young people can disengage entirely without clear accountability.