The warning comes after the publication of the Government-commissioned Young People and Work Review led by former Labour Cabinet Minister Alan Milburn, which described the current situation as a “whole-system failure” and warned Britain risks creating a “lost generation” without immediate intervention.

The report highlights that one in eight young people aged 16–24 are currently NEET, with projections suggesting this could rise to one in six by 2031 if no action is taken. Sectors including hospitality continue to face persistent labour shortages, rising recruitment costs and widening skills gaps.

The report identifies declining entry-level opportunities, reduced apprenticeships and broken pathways into employment as key drivers behind the crisis. The review also estimates the NEET crisis is costing the UK economy £125 billion annually through lost productivity, reduced tax revenue and increased welfare spending.

Umbrella Training believes hospitality can once again become one of the UK’s strongest gateways into employment by creating meaningful, accessible and inclusive entry routes for young people.

Through its Hospitality & Catering Foundation Apprenticeships and HOP Programme, Umbrella Training is helping rebuild the connection between young people and long-term careers by:

• Creating structured pathways into employment
• Providing practical, real-world work experience
• Supporting confidence, employability and life skills
• Helping employers invest in sustainable future talent pipelines

Sam Coulstock, executive director of partnerships & growth at Umbrella Training, said: “We understand how difficult things are for employers right now. Costs are rising, margins are tight and uncertainty is real. But if we don’t invest in our next generation today, the challenges we face as a sector will only become harder tomorrow.

“Alan Milburn’s review is a wake-up call. This is not a failure of young people, it is a failure of the system around them. Hospitality has always been a gateway to opportunity. With more than a million young people currently outside education, employment or training, we have a moral duty to step forward and be part of the solution.”