On Tuesday, former prime minister Tony Blair took the podium to launch a scathing attack on Sir Keir Starmer’s government, accusing the Labour Cabinet of pursuing a growth‑crippling agenda that refuses to address the exploding welfare bill. A day later, former health secretary Alan Milburn warned that the party’s inaction on youth unemployment risks creating a lost generation , citing that more than 950,000 16‑to‑24‑year‑olds are now NEET—a rise of 200,000 since 2021.

NEET Numbers Rise to 950,000, Cost Britain £21 billion Annually

According to Milburn, the 950,000 NEETs represent a £21 billion annual loss in gross domestic product. He warned that if decisive action is not taken, the fiigure could swell to 1.25 million by 2031, a projection that underscores the urgency of the crisis. The report, as Milburn highlighted,points to a growing proportion of young people who are not even obliged to seek work, often citing mental‑health challenges.

Blair Accuses Labour of “High Taxes, Heavy Regulation” and a “Left‑Wing Comfort Zone”

Blair’s critique, as reported, frames the current Labour government as retreating into a left‑wing comfort zone defined by high taxes, heavy regulation and symbolic gestures, without presenting a coherent strategy for economic recovery.. He argued that this approach is “growth‑crippling” and that the party has become synonymous with benefit dependency and public‑sector unionism.

Milburn Calls for Employer Tax Cuts and Welfare Overhaul

Milburn, who chairs the Social Mobility Commission, urged Labour to ease the hiring process by eliminating the recent rise in employers’ National Insurance contributions and reversing what he described as misguided workers‑rights legislation championed by Angela Rayner. He also called for a comprehensive overhaul of the welfare architecture to restore the virtue of work and make state support a genuine last resort.

Who Is Responsible for the Rise in NEETs?

Milburn placed blame at the feet of schools, the National Health Service and skills‑training providers , accusing them of failing to prepare young people for the labour market. He also warned that the welfare system is becoming financially unsustainable, with contributing workers bearing the burden of supporting non‑contributors.

What Are the Missing Details on Proposed Reforms?

While the veterans have outlined a broad agenda—cutting employer taxes, overhauling welfare, and confronting mental‑health barriers—specific policy proposals remain vague. the source notes that Work and Pensions Secretary Pat McFadden has announced an expansion of youth work‑experience placements, but Milburn warned that without broader business‑friendly reforms, these programmes will struggle to find employment destinations for participants.