Milburn report proposes state-subsidized flexible jobs for disabled youth

Former Labour cabinet minister Alan Milburn will recommend that the British state create and subsidize paid employment for thousands of young people with disabilities. The report, scheduled for release this month, frames the proposal as part of an opportunity revolution aimed at reversing long-standing labor market discrimination.

The review argues that the government should introduce flexi-jobs alongside employment subsidies and intensive skills support. This approach targets disabled and chronically ill individuals aged 16 to 24. The goal is to help those currently locked out of standard employment and training opportunities by overhauling what the report describes as an outdated welfare and skills system.

Approximately one million young people in the UK are currently classified as Neet, meaning they are not in education, employment, or training. Official figures indicate that 45% of this group are disabled or in ill health. Disabled young people are three times as likely to be Neet as their non-disabled peers.

Milburn has described the rise in Neets as a moral and economic crisis. He warned that failing to address youth disengagement risks creating a lost generation. He rejected the notion that young people are snowflakes, asserting that the mental health crisis is real and that most youngsters want to work. He placed the duty of providing support on government and employers.

One central recommendation 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. Some participants might start with as few as four hours per week, with the government topping up their wages to ensure sufficient income.

The report also proposes job carving, a method that splits a single entry-level role into multiple opportunities based on specific capabilities. For example, a retail position involving stock-filling, till work, and locking up could be divided into three distinct job roles. This strategy addresses barriers in recruitment processes and inflexible job design that often prevent businesses from hiring young people with disabilities.

Milburn suggested that the state should redirect some of the £4 billion it currently spends on disability benefits for young people into comprehensive employment and training support. He argued that this shift would provide high-quality support rather than crude benefit cuts. However, campaigners and some Labour MPs may push back, arguing that funding job support through benefit reductions could push young people into poverty.

The most common conditions reported by disabled Neets are depression or anxiety, affecting 23.8% of the group. Autism is the second most common, reported by 22.7%, while other health problems or disabilities affect 18.5%. The report will also urge large employers to voluntarily adopt employment targets for disabled 16- to 24-year-olds, though it is expected to avoid recommending statutory quotas.