Union leader urges government to spend on youth jobs before benefits cuts

Young people in the United Kingdom may face stricter benefit rules alongside new job programs, according to a warning from the head of the country’s largest trade union body. Paul Nowak, general secretary of the Trades Union Congress, stated that the government must increase spending on employment support to avoid relying on arbitrary cuts to welfare.

Nowak made these comments ahead of the release of the Milburn review. The report, led by former Labour health secretary Alan Milburn, is expected within the week. It will address the situation of nearly one million young people who are not in education, employment, or training, a group known as Neet. The review was delayed until after the budget to prevent conflicts with the spending plans of Chancellor John Healey.

The union leader argued that the cost of expanded training and job assistance would be recovered through economic growth. He told the Guardian that the government has a once-in-a-generation chance to secure the futures of young people. Nowak said there is no cost-free solution, but that failure to invest would cause the benefits bill to rise as more young people remained out of work.

He emphasized the need for social infrastructure alongside physical construction. Nowak urged Prime Minister Andy Burnham to focus on delivering a step change in employment support. Burnham has previously described the rise in young people classed as Neet as an economic catastrophe and a moral failure. He indicated that his government would pair tougher benefits rules with more help for young people in its response to the review.

The prime minister has maintained a cautious approach to avoid repeating the welfare rebellion that forced Keir Starmer and Rachel Reeves to reverse planned disability benefit cuts. Nowak said he did not believe the government would repeat that failed attempt at reform, which involved cuts that hit vulnerable people without a support plan.

Public concern regarding youth unemployment is rising. A poll by Focaldata for the Jobs Foundation shows most Britons view the issue as one of the country’s biggest problems. It ranks second only to the cost of living and above concerns about NHS waiting lists, housing, crime, and immigration.

The Jobs Foundation, co-founded by Conservative peer Matthew Elliott, launches a national campaign against worklessness on Monday. Leading employers, including Amazon, Pret a Manger, NatWest, Marks & Spencer, and Shell, have pledged to support young people overlooked for work. A government spokesperson said the department is determined to turn the tide on youth unemployment. They pointed to a £2.5 billion pledge in youth employment support, which aims to deliver almost 500,000 opportunities to earn and learn. Additional reforms will follow the publication of the Milburn review in the autumn.