Fears intensify that a generation of youngsters could be lost to life on benefits

A generation of youngsters could be lost to life on benefits, ministers fear, as they launched a probe into youth unemployment.

Nearly one million - or approximately one in eight - people aged 16 to 24 are not in education, employment, or training (Neet), according to the Office for National Statistics.

More than a quarter cite long-term sickness or disability as a barrier, and the number claiming health benefits is also growing.

And former Health Secretary Alan Milburn is leading an independent probe into the growing scandal amid fears Britain's benefits bill is spiralling out of control.

Mr Milburn, who served in Sir Tony Blair's New Labour administration in the 1990s and early 2000s, said "urgent action" was needed.

"We cannot stand by and let a generation of young people be consigned to a life without employment or prospects," he said.

"That's why, with the help of a panel of expert advisers, I will aim to get to the bottom of why current efforts are not preventing young people from becoming trapped out of work and education.

"The review will be uncompromising in exposing failures in employment support, education, skills, health and welfare and will produce far-reaching recommendations for change to enhance opportunities for young people to learn and earn."

The independent Office for Budget Responsibility has forecast that the overall bill for health and disability benefits for working age people alone is set to rise to about £72.3bn in 2029-30.

But ministers have shelved attempts to slash welfare spending on disability benefits to appease Labour backbenchers.

Work and Pensions Secretary Mr McFadden said: "The rising number of young people who are not in education, employment or training is a crisis of opportunity that demands more action to give them the chance to learn or earn.

"We cannot afford to lose a generation of young people to a life on benefits, with no work prospects and not enough hope.

"I am determined to build a system that supports young people, not just in finding a job but to build a better future - because when young people succeed, Britain succeeds.

"If we get this right, the prize is huge - transforming lives and life chances, with the pent-up potential of the next generation firing our economy and building a better future for all."

Asked whether he thought over-diagnosis was fuelling a mental health crisis among young people, Mr McFadden told the Sunday Times: "I don't want to play amateur doctor. I want to approach this with sensitivity.

"The question I'm asking is, given the higher reported number of these conditions among young people, what is the best policy response?

"I don't believe there should be an automatic link between diagnosis and benefits."