UK may spend over £6 billion to reduce youth unemployment, report says

Former Labour Health Minister Alan Milburn has indicated that Prime Minister Andy Burnham could face a bill exceeding £6 billion to implement new measures aimed at reducing youth unemployment in the UK, according to dailymail.com.

Milburn's recommendations are based on successful youth job schemes in countries like Germany and Denmark, which spend significantly more on job support. Germany spends 0.3% of GDP on such programs, including wage subsidies for workers under 30, while Denmark invests 0.4% of GDP and offers subsidized 'flexi jobs' for young disabled people.

Currently, the UK spends about 0.1% of GDP, approximately £3.7 billion annually, on helping people into work. Increasing spending to Germany's level would raise costs to over £6 billion, according to Milburn's analysis.

Andy Burnham acknowledged that the recommended measures would require upfront investment but said they would not directly increase the welfare bill. He emphasized the need for investment in support and guarantees for young people, expecting eventual savings from these initiatives.