London youth face job uncertainty as budget omits NEET measures

London’s youngest residents face heightened uncertainty after the Chancellor’s 2026 Budget failed to introduce fresh initiatives for those not in education, employment or training. The omission follows data showing that one in four Londoners aged 18 to 24 fall into the NEET category.

Scale of the NEET challenge

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The Office for National Statistics reports that the total number of NEETs across the United Kingdom is now close to one million, with London among the most affected regions. Youth Employment UK highlighted that the capital’s unemployment rate for this age group exceeds that of any other English region.

London faces a unique youth unemployment challenge.

Baz Ramaiah, Policy and Research Director, Youth Employment UK

Baz Ramaiah added that a lack of work experience is a key barrier for young Londoners, who are 12 percent more likely than the national average to cite this obstacle. The figure underscores the need for structured placement schemes.

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Budget silence and upcoming policy

Chancellor John Healey told the House of Commons that forthcoming policy will follow the Milburn report on youth unemployment, due next month. He also promised a reduction in the welfare bill, describing the approach as “Labour‑style”. No concrete funding or programme details were disclosed at the time.

The Nuffield Trust recorded that 205,000 people aged 16 to 24 received Personal Independence Payment in April 2026, a three‑fold rise since 2019. The increase adds pressure on social‑support budgets while the labour market remains tight for entry‑level roles.

Calls for a jobs guarantee

Kamran Malekzai, assistant researcher at the New Economic Foundation, warned that welfare cuts alone will not solve the problem. He called for an immediate scale‑up of a jobs guarantee that would provide a paid first chance for young people and cover training costs.

Youth Employment UK echoed this stance, arguing that a permanent, cross‑city Youth Participation System could create the placements needed to move young Londoners into work.

Local boroughs, including Barnet, have yet to announce specific actions. Residents should monitor council meetings for any proposals that align with the national recommendations once the Milburn report is published.

The next formal step is the release of the Milburn report, after which the Department for Work and Pensions is expected to outline any new funding streams. Stakeholders are advised to submit evidence during the forthcoming consultation period.