'Urgent action needed!' Government orders probe into soaring levels of inactivity among young Britons

According to research from the Resolution Foundation, the number of so-called "Neets" has spiked by almost 200,000 over the past 20 years.

It has now reached 940,000 people and the figure is expected to exceed one million for the first time in more than a decade.

Work and Pensions Secretary Pat McFadden has labelled the large number of 16-24 year olds dropping out of work and education as a "crisis of opportunity".

Around a quarter of Britain's "Neets" have blamed inactivity on disability or long-term sickness.

The recent Resolution Foundation report noted that the number of young Britons claiming health and disability benefits was also on the rise.

Mr Milburn will examine why youth inactivity is growing, outline measures to cut its long-term impact and support young people in shifting from benefits to the workplace, the Government has said.

The review’s findings are expected to be published in the summer.

Sir Keir Starmer has previously branded Britain’s benefits system “unsustainable”, “indefensible” and “unfair”.

However, the Prime Minister faced stiff resistance from Labour backbenchers when he moved to overhaul the system earlier this year.

Rebel MPs ultimately forced Sir Keir to water down key parts of his welfare reform bill, leading to major concessions.

Recent Department of Work and Pensions (DWP) figures show there has been a 50 per cent increase of the number of young people claiming UC Health and Employment Support Allowance since 2020.

An estimated 80 per cent of these claims are due to neurodevelopmental condition and mental health reasons.

Discussing whether the crisis among Britain's youth was being made worse by the over-diagnosis of mental health issues, Mr McFadden told the Sunday Times: "I don't want to play amateur doctor. I want to approach this with sensitivity.

"The question I'm asking is, given the higher reported number of these conditions among young people, what is the best policy response?

"I don't believe there should be an automatic link between diagnosis and benefits."

The minister added that if the Government succeed in tackling the crisis, "the prize is huge: transforming lives and life chances, with the pent-up potential of the next generation firing our economy and building a better future for all.

"We cannot afford to lose a generation of young people to a life on benefits, with no work prospects and not enough hope."

Ahead of the review, Mr Milburn said that "it's clear urgent action is needed".

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