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Milburn Review Warns Benefit Cuts Increase Poverty Without Creating Jobs

Universal credit claimants face severe employment barriers in regions with critically low vacancies, according to New Economics Foundation analysis. Local authorities with the highest rates of young people not in education, employment or training registered just six online…

Milburn Review Warns Benefit Cuts Increase Poverty Without Creating Jobs

Universal credit claimants face severe employment barriers in regions with critically low vacancies, according to New Economics Foundation analysis.

Local authorities with the highest rates of young people not in education, employment or training registered just six online job advertisements for every 100 unemployed claimants in May 2026. Ahead of the Milburn review publication, researchers warn that benefit reductions will increase poverty without generating new work opportunities.

Job availability varies sharply across England and Wales. Blackpool recorded the highest youth NEET rate, offering only five online job adverts for every 100 universal credit claimants not in work in May 2026. Cambridge emerged at the opposite end, listing 61 online vacancies for every 100 claimants during the same month. This disparity gives Cambridge twelve times as many job postings per claimant as Blackpool.

Even local authorities featuring the lowest NEET rates offered merely 16 online job adverts per 100 out-of-work claimants in May 2026. These figures derive from Office for National Statistics labour demand volumes and Department for Work and Pensions Stat-Xplore data. Researchers ranked local authorities by youth NEET shares from the 2021 Census before splitting them into five equal groups.

Milburn: 'Shameful' more spent on benefits than jobs for young people — BBC Politics

George Bangham, head of social policy at the New Economics Foundation, criticised current policy proposals regarding young jobseekers.

“We’ve had lots of hints about what the Milburn review will recommend, but so far there’s not been enough discussion about the tough reality of many local job markets,” said George Bangham, head of social policy, New Economics Foundation.

“Even the best employment support in the world can’t help young people into work if the opportunities aren’t there. Cutting their benefits pushes people further into poverty, but won’t create any jobs,” Bangham said.

While young jobseekers can travel outside their immediate local authorities for employment, public transport costs frequently block access. Researchers suggest the government prioritise job creation, high-quality training programmes, and reduced transit fares to connect applicants with existing openings.

The Milburn review, scheduled for release next week, is expected to recommend increased government investment in employment support. Think tank analysts advise caution regarding any funding models reliant on youth benefit reductions.

The NEET rate measures the share of individuals aged 16 to 24 who are not engaged in education, employment, or training, calculated using 2021 Census data from the Office for National Statistics.

The figures incorporate claimants of all ages from Department for Work and Pensions Stat-Xplore data who are classified as not in work, including those searching for work, planning, preparing, or exempt due to ill health.

London is evaluated as one region because the Office for National Statistics publishes online job advertisement data exclusively for London as a whole rather than for individual boroughs.

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