Skip to content

580. How to Solve Britain’s Youth Unemployment Crisis

The Rest Is Politics

Hosted by Alastair Campbell and Rory Stewart

1h 0m
Transcript

Original podcast

Summary

Written by a model from the transcript; not yet reviewed.

This episode focuses on Britain's worsening youth unemployment and detachment crisis, featuring former New Labour Cabinet Minister Alan Milburn discussing his upcoming report on NEETS (those not in education, employment, or training). The discussion explores why one in eight young people find themselves disconnected from the workforce, contrasting the British system with more successful European models like the Netherlands and examining the complex intersections of mental health, welfare, education, and artificial intelligence. The conversation delves into the controversial policy changes required to reform a welfare system that can act as an elephant trap rather than a springboard.

  • Reform the welfare system to transition support from passive income to active participation in work or training. 33:45
  • Integrate work experience and part-time jobs into mainstream secondary and primary education to build early career pathways. 14:22
  • Address the demand side of labor by making it less risky and more manageable for small and medium enterprises to hire young people. 26:15
  • Prioritize investment in human capital and early intervention to prevent long-term economic drag and personal hardship. 24:34

Chapters

  1. 0:01
    Episode Introduction and NEETS Overview

    Hosts set the stage, highlighting the youth unemployment crisis and introducing Alan Milburn as the key expert.

  2. 1:00
    Sponsor Messages and Advertisements

    Brief interjections from sponsors Fuse Energy, Wise, and other brands interrupt the discussion.

  3. 4:09
    Question Time Begins – NEETS Definition and Scale

    Rory and Alistair open the Q&A, asking Alan Milburn to explain the NEETS problem and its magnitude.

  4. 4:42
    Systemic Causes of NEETS – Labour’s Perspective

    Alan Milburn outlines the chronic, systemic nature of NEETS, linking it to mental health, labour market shifts, and policy gaps.

  5. 5:52
    International Comparison – Britain’s Unique Position

    Milburn compares the UK’s NEETS rate to other European countries, stressing Britain’s peculiar challenges.

  6. 7:11
    Policy Timing and Budget Concerns

    Listeners question the timing of Milburn’s report relative to the budget and the government’s commitment to action.

  7. 16:00
    Education System Overhaul – Learning and Earning Integration

    Milburn examines how the UK’s education system can better integrate work experience and vocational training.

  8. 25:59
    Employer Engagement – Reducing the Risk of Hiring Youth

    Exploration of how to make it easier and less risky for employers, especially SMEs, to hire young workers.

  9. 30:38
    Narrative Shift – From Blame to Systemic Reform

    Milburn argues that the problem is systemic, not individual, and calls for a redesign of welfare and education systems.

  10. 33:13
    Welfare Reform – Turning Benefits into Springboards

    Detailed discussion on transforming welfare from a safety net into a springboard for employment and training.

  11. 46:59
    Closing Reflections – Personal Experience and Future Directions

    Milburn reflects on his role as a former cabinet minister, the challenges of influencing policy, and the urgency of change.

  12. 48:08
    Engaging Ministers for Rapid Implementation

    The speaker explains how ongoing conversations with cabinet ministers aim to shorten the time from report to action.

Highlights

  • 5:08

    The Rise of Youth Detachmentinsight

    Six in ten young people categorized as NEETS have never worked, marking a shift from youth unemployment to total youth detachment driven by mental health issues and labor market changes.

  • 13:14

    The Dutch Earning and Learning Modeldata

    Over fifty percent of Dutch teenagers aged sixteen to eighteen combine learning with part-time work, compared to just seventeen percent in Britain, highlighting a cultural focus on the primacy of work.

  • 17:06

    Flaws in the Welfare Assessment Systeminsight

    The current health and welfare model focuses excessively on what individuals cannot do rather than what they could achieve with proper employment support.

  • 20:09

    The Welfare Elephant Trapinsight

    Health and disability benefits can trap young people in permanent inactivity, leaving them with a fifty percent chance of remaining on benefits fifteen years later.

  • 24:43

    Economic Cost of Inactiondata

    Failing to integrate young people into the workforce creates an estimated economic drag of 125 billion pounds per year in lost growth for the UK.

  • 32:21

    Imbalanced State Spendingdata

    For every twenty-five pounds spent on passive income support for young people on benefits, the state spends only one pound on active employment support.

Quotes

  • “And unless there is major intervention, we could be at one in six within five years.”
    Alastair Campbell · 0:26
  • “Six in 10 of these young people have never worked, they've never had the chance to be unemployed because they've never been employed.”
    Unnamed speaker · 5:12
  • “So this is a different, just as there was a different way of having to think about capital investment as being a good long term thing, we've got to think about human investment as being a good long term thing.”
    Unnamed speaker · 24:58
  • “For every pound we spend investing in young people getting to work, it's costing us 25 to keep those who are not working, kind of, you know, off the breadline.”
    Alastair Campbell · 32:40
  • “we've been in active conversation with most cabinet ministers. So with Avet in health, with Pat in welfare, with Lucy in education, with Lisa in DCMS, with Angela, I was just talking to last week about local government mayors,”
    Unnamed speaker · 48:08
  • “And it becomes almost inevitable and inertia takes over.”
    Unnamed speaker · 51:22
  • “None of them have lasted, not one, not one, because they've not been systemic.”
    Unnamed speaker · 52:23
  • “And what we've got to do, as Andy talks about rewiring the state, is to make sure that the powers and accountabilities to make these changes happen, happen at a local level, not just at a national level.”
    Unnamed speaker · 53:12
  • “If you don't invest, you'll end up paying a massive price.”
    Unnamed speaker · 53:46
  • Fuse Energy 1:00–1:56
  • Wise 2:03–2:57
  • Tremfya 2:59–3:52
  • therestispolitics.com 25:55–25:57
  • Carvana 28:11–28:40
  • Visible 28:47–29:06
  • Folgers 29:38–29:47
  • blinds.com 1:02:09–1:02:34
  • Brown University 1:02:40–1:02:55

About this episode

In Britain, we spend £25 on benefits for every £1 we spend helping young people find work. So why have successive governments failed to fix this – and what does Alan Milburn’s review, due this autumn, say needs to change? How have countries with the lowest youth unemployment rates tackled the issue, and what is the one intervention Andy Burnham’s government should put its money behind? How can we convince employers to take a chance on young people? Rory and Alastair are joined by Alan Milburn as they answer all these questions and more in this week's edition of Question Time. __________ Enjoy Rory and Alastair’s interview with Andy Burnham by searching ‘Leading’ on Spotify, Apple, or YouTube. Go deeper into the world of The Rest Is Politics by signing up for our free newsletter HERE, featuring exclusive interviews, analysis and weekend reads from Alastair and Rory. Join The Rest Is Politics Plus. Start your free trial at therestispolitics.com to unlock exclusive bonus content – including Rory and Alastair’s miniseries – plus ad-free listening, early access to episodes and live show tickets, exclusive newsletters, discounted book prices, and a private chatroom on Discord. The Rest Is Politics is powered by Fuse Energy. Stop overpaying for energy. Switch at fuseenergy.com/politics and get a free TRIP+ subscription. Sponsored by Lloyds. Move faster with daily global market analysis, the download on tokenisation and how to manage your company's energy transition all from Lloyds Corporate & Institutional Banking. Search Lloyds Corporate. __________ Instagram: @restispolitics Twitter: @restispolitics Email: [email protected] __________ Social Producer: Emma Jackson, Bex Tyrrell Video Editor: Bruno Di Castri, Lorcan Moullier Assistant Producer: Daisy Alston-Horne, Evie Townend Producer: Evan Green Exec Producer: Bella Soames Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

0:00
1:00:58

11,957 words · 13 speakers

Speaker names marked are inferred from speaking time and the show’s known hosts — they are not voice-verified.

Topics

  • AI
  • PIP
  • Britain
  • 5G
  • Germany
  • Holland
  • Universal Credit
  • France
  • YTS
  • Netherlands

Page updated · transcript and summary are machine-generated