Huge numbers of young people are getting 'trapped in a world of benefits', a Labour adviser has warned.
The stark message was delivered by Alan Milburn, who is leading a government review into surging numbers of so-called NEETs - youths not in education, employment or training.
He said that with a million people in the category the problem now went beyond unemployment, as the younger generation was 'detached' from the jobs market. And the dilemma could deepen as the effects of AI are felt.
The intervention comes after Keir Starmer backed off efforts to curb welfare spending in the face of a revolt from Labour MPs.
The rising cost of handouts have been putting pressure on the public finances, while working-age inactivity remains a significant problem after Covid.
Alan Milburn is leading a government review into spiralling numbers of so-called NEETs - youths not in education, employment or training
There are particular concerns about the number of NEETs, which spiked during the pandemic and has not returned to previous levels.
Speaking on the BBC's Westminster Hour, Mr Milburn - a former New Labour minister - bluntly described the issue as a 'crisis'.
'It's now a million young people across the country who are not in education employment or training,' he said.
'If they formed a city that would be the third biggest in the UK, and it's getting worse not getting better.'
Mr Milburn said 'there is almost a downward escalator for too many young people, they've got poor health, poor education'.
'You may get a SEND diagnosis, then people end up on child disability living allowance, and if you're not careful then you find people are trapped in a world of benefits,' he added.
Mr Milburn said that 'youth detachment' posed a major risk to the UK's economy.
'You've got 61 per cent of this one million cohort of young people not in education, employment and training who are not economically inactive, they're not looking for work,' he said.
'This is no longer a problem purely about youth unemployment, it's a problem about youth detachment from the labour market.'
The number of NEETs spiked during the pandemic and has not returned to previous levels
Mr Milburn said the current school curriculum did not prepare young people for life, and warned that factors like AI could make the issues even worse.
'The way that the curriculum currently works is it focusses two much on qualifications and not enough on attributes,' he said.
'The future labour market is going to be a very, very fast-changing one. Is the education system really equipped to prepare young people for the future? I think the answer honestly right now is probably not.'
