British parents will have to delay their retirements to fund their adult children living at home, an ex-minister has warned. The Office for National Statistics (ONS) found that more than half of young people in their early twenties lived with their parents, as they face a challenging job market and skyrocketing living costs.

The rate among 25- to 34-year-olds has also risen over the past decade, from 13% to 18% between 2006 and 2024. Alan Milburn, who is leading a government review into youth unemployment, said that the increasing number is putting a strain on parents, who he said “are entitled to a life as well”.

He told The Times: “Official figures on Neets mask a family support system that is on the brink. Too many parents are becoming the invisible welfare state. They are financing adult children and often absorbing their mental health crises at the same time. They are the unwitting victims of this Neet crisis.”

Mr Milburn said young people’s living situations were one of necessity, not desire, faced with a lack of opportunities.

The number of young people not in employment, education, or training (Neets) is now close to a million, according to figures from the Labour Force Survey. Many young people are facing an incredibly challenging job market, skyrocketing house prices, with many reporting having applied to hundreds of jobs to no avail.

“They want to be able to work and get on in life but the opportunities available for them are not as good as they should be.”

He said it meant that for at least for some parents, retirement “has to be deferred” and it was “putting lives on hold”.

Young Neets are a key focus in Government. At Labour’s annual conference in September, Chancellor Rachel Reeves announced that every young person who has been on Universal Credit for 18 months without “earning or learning” would be offered a guaranteed paid work placement.

It followed a “Youth Guarantee”, announced last November, which promised every 18 to 21-year-old in England access to an apprenticeship, training, education opportunities or help to find a job.

The Secretary of State for Work and Pensions Pat McFadden said the government wanted to make sure “every young person has the chance to succeed, no matter where they are from or what their background is”.

Figures also showed the number of young people claiming unemployment benefits soared across most of the UK since Labour came to power, despite the overall number of claimants falling.

In October, there were 323,000 young adult claimants aged 18 to 24, which was 37,000 more than at the last election in July 2024. Some people claiming these benefits may actually be in work, but earning below the threshold.

It has increased drastically since before the pandemic, too. There were 89,000 more young people claiming unemployment-related benefits than the month before COVID.

Ken James, Director at Contractor Mortgage Services, warned that the impact of youth unemployment spreads to every aspect of a young person’s life.

“It leads to a loss of structure, declining self-belief, mental health strain, and long-term inactivity. This isn’t about creating more vacancies, it’s about clear pathways, mentorship, and visible role models.”

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