Britain faces rising costs as youth investment stalls after years of cuts

Alan Milburn’s inquiry into youth unemployment argues that austerity measures since the post-2008 crash have eroded the foundations of a fair economy, leaving a large cohort of NEETs and inflating welfare costs. Funding for youth services in England has fallen by 76%, school per-pupil spending was frozen for 14 years, and investment in school buildings dropped by a quarter, while early-years hubs like Sure Start were dismantled.

The review finds that the state spends £25 on benefits for each £1 directed to youth employment programs, and that preventable health conditions now consume up to 40% of NHS spending. Research from the Health Foundation and the Office for Budget Responsibility suggests that restoring health to 2014 levels could raise GDP by 2% and cut national debt by about 45% of GDP by the 2070s. Andy Burnham is urged to build a “preventive state” that invests ahead of crises, yet Treasury skepticism remains because savings appear only after many years, often under a different government. The piece concludes that without a strategic shift, Britain will continue to bear the financial and social burden of past under-investment.