A new report from the Tony Blair Institute for Global Change (TBI) has suggested major changes to the UK's welfare and employment systems, aiming to tackle the issue of young people not in education, employment, or training—commonly referred to as "Neet." The report proposes that young people with non-work-limiting health conditions, such as anxiety and depression, should no longer receive cash benefits like the Personal Independence Payment (Pip) and the health element of Universal Credit. Instead, the funds would be redirected toward mental health treatment, skills training, and job placements. The goal is to encourage workforce participation and reduce long-term reliance on welfare. The TBI argues that the current welfare system is inadvertently promoting inactivity by offering financial support without requiring engagement in work or training. This aligns with the views of Alan Milburn, who is leading a government-commissioned review into young people and unemployment. Despite a slight decline, the number of young Neets remains around one million. Milburn recently described the situation as a “catastrophic system failure,” noting that many young people want to work but are stuck on benefits. However, disability advocates have raised concerns about the potential impact of benefit cuts on younger claimants, particularly those with disabilities. Disability campaigners, including Abdi Mohamed from the charity Scope, warn that removing benefits could push young disabled people into poverty rather than helping them find work. They stress the importance of investing in apprenticeships, flexible working arrangements, and training programs instead of reducing essential support. These concerns come as new Prime Minister Andy Burnham seeks to reduce the UK’s welfare spending, which is projected to reach £77.1 billion by 2025/26. However, the government has emphasized that any changes should avoid pushing people into crisis and creating greater long-term costs. The TBI report also highlights the rising cost of employing young people, which has increased by 40% since 2015. Researchers suggest halting plans to equalize minimum wage rates between younger and older workers to reduce this cost. They point to the Netherlands, where 18-year-olds earn only half of what adults earn, compared to the UK’s 76%. While the UK has one of the lowest Neet rates in Europe at 4%, TBI’s Ryan Wain argues that the country still faces a Neet crisis and must ensure jobs are available when young people are ready for them. The government has committed to reforms focused on opportunity and work, with upcoming reviews expected to shape future policy changes.