Alan Milburn Warns of Rising NEETs Due to Minimum Wage Hikes in UK
Minimum wage rise has made it difficult for employers to hire young people, says Alan Milburn – UK politics live
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Alan Milburn, former health secretary and chair of the Social Mobility Commission, warns that the rise in minimum wage and employer costs is contributing to a potential increase in young people not in education, employment, or training (NEETs) in the UK. Without government intervention, the number of NEETs could reach 1.25 million by the early 2030s.
- 01Alan Milburn's report indicates a potential 25% rise in NEETs, reaching 1.25 million by the early 2030s.
- 02Milburn emphasizes that employers in low-margin sectors like retail and hospitality are particularly affected by the increased minimum wage.
- 03He calls for the government to reconsider recent changes to employer national insurance and minimum wage policies.
- 04The report, exceeding 200 pages, is described as thorough and addresses the causes of rising NEET numbers.
- 05Milburn's findings are part of a broader review commissioned by Keir Starmer's government.
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Alan Milburn, former health secretary and chair of the Social Mobility Commission, has published a report highlighting the rising number of young people in the UK who are not in education, employment, or training (NEETs). He warns that without urgent government action, the number of NEETs could increase by 25%, potentially reaching 1.25 million by the early 2030s. Milburn's report, which is over 200 pages long, focuses on the impact of recent increases in the minimum wage and employer national insurance on hiring practices, particularly in low-margin sectors such as retail and hospitality. He notes that many employers express concerns about these changes, stating that while they do not want to pay poverty wages, the rising costs make it challenging to create entry-level jobs for young people. Milburn's findings are part of a review commissioned by Labour leader Keir Starmer, with a second report expected in the autumn that will include policy recommendations.
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The rise in NEETs could lead to increased unemployment rates among young people, affecting local economies and communities.
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