Milburn report proposes state-subsidised jobs to aid disabled youth

The British government is expected to be urged to create and subsidise paid positions for thousands of disabled young people as part of a broader opportunity revolution. This recommendation forms the core of the Milburn review on youth employment, which is scheduled to report its findings this month. The aim is to reverse long-standing patterns of discrimination in the labour market by introducing flexible work arrangements, employment subsidies, and intensive skills support. These measures are designed to help disabled and chronically ill individuals aged between 16 and 24 secure stable work.

The review argues that the state must intervene to underwrite jobs for young people who are currently locked out of both employment and training. This approach is part of a wider overhaul of what the report describes as an outdated welfare and skills system. Currently, approximately one million young people are classified as Neet, meaning they are not in education, employment, or training. A significant portion of this group, nearly half, are disabled or in ill health. Disabled young people are three times as likely to be Neet as their non-disabled peers, highlighting a critical disparity in access to work.

Alan Milburn, the former Labour cabinet minister who authored the review, has described the rising number of Neets as both a moral and economic crisis. He warned that failing to address the growing disengagement of young people from the workforce risks creating a lost generation. Milburn rejected common misconceptions, often referred to as myths, that young people are overly delicate. Instead, he insisted that the crisis in youth mental health is real and that it is the duty of both government and employers to provide necessary support and opportunities, noting that most young people genuinely want to work.

One of the most notable recommendations is for the UK to adopt a Danish-style flexi-job scheme. This model would guarantee employment for disabled participants while allowing them to set their own working hours. In some cases, individuals might start with as few as four hours per week, a schedule tailored to their individual capacities. The government would top up their wages to ensure financial stability. The review suggests this flexible approach acknowledges fluctuating medical conditions and the lack of prior work experience, recognising that part-time roles are vital for building confidence.

The report also advocates for creative methods of shaping jobs to match individual capabilities. One such concept is job carving, which involves splitting the component parts of a single entry-level role into separate positions. For example, a retail job that typically includes stock-filling, till work, and locking up could be divided into three distinct job opportunities. This strategy allows young people to focus on tasks that align with their specific strengths and limitations.

Nearly half of 24-year-old Neets have never worked. In his interim report earlier this year, Milburn argued that abandoning a cohort of young people from the pandemic era, many of whom cope with high levels of depression, anxiety, autism, and ADHD, would have a scarring effect on their life chances and lifetime earnings. The most common conditions reported by disabled Neets are depression, bad nerves, or anxiety, followed by autism and other health problems or disabilities.

While the government has stated it will not endorse crude cuts to benefits, Milburn has suggested reallocating some of the four billion pounds spent annually on disability benefits for young people. This funding would be redirected toward comprehensive, high-quality employment and training support. However, this proposal may face resistance from campaigners and backbench Labour MPs. They argue that job support should not be funded by reducing disability benefits, as this could push many young people into poverty and further distance them from the job market.

The proposals recognise that young people with disabilities face significant barriers in recruitment processes and inflexible job design. Many businesses are unlikely to create job opportunities for this demographic without direct government support. The plans draw parallels to the postwar Remploy scheme, which provided state-funded, sheltered employment for disabled ex-service personnel. At its height, Remploy operated 90 factories across the UK, with the last one closing in 2013.

The review will urge large employers to voluntarily adopt employment targets for disabled 16- to 24-year-olds. While it is expected to stop short of recommending statutory quotas, it aims to encourage private sector engagement. In addition to creating jobs, the report calls for a boost in job support services. This includes supported internships, placements, specialist job matching, coaching, and financial support for employers to provide necessary workplace adjustments.

Milburn has been critical of the limited ambitions of existing government job support programmes. He has previously called for turbo-charging specialist internships for young people with special educational needs who are transitioning from school and college. The final report seeks to address these gaps by ensuring that the support system is robust enough to facilitate a genuine revolution in youth employment opportunities.