Prime Minister Andy Burnham has warned the UK faces an "economic catastrophe and moral failure" due to the nearly one million young people not in education, employment or training.
Writing in the Times newspaper, external, Burnham has laid out his case for the government to "invest in the success of our young people" rather than "pay for failure through the benefits system".
"Benefits will become the backstop, not the starting point," Burnham wrote in his piece published in Monday's paper.
Later this week, the government is expected to announce plans to give young people thousands of job opportunities. The Conservative Party has labelled the government's youth employment strategy "a disaster".
According to the latest data from the Office for National Statistics, there are almost a million people aged 16 to 24 known as Neets - not in education, employment or training.
In his opinion column, the prime minister said this reflected a "generation being denied its chance to get on in life".
"This is an economic catastrophe and a moral failure. And it must change," he wrote.
Burnham said two years of Covid lockdowns, social media that erodes "confidence and sense of belonging", an education system focused on the "university route", job markets with "too few opportunities" and failures of previous governments have all contributed to the Neets crisis.
"Today, the welfare system provides an assessment, a payment and, after that, goodbye," Burnham wrote. "Too often there is no support, no offer of skills and no opportunity to get a job."
He flagged a shift in the approach to welfare, which he said "will no longer begin by establishing which benefits a young person is entitled to" but rather "begin with their ambitions and the help they need to achieve them".
The prime minister added: "The safety net will always be there for those who cannot work. But if someone can work with the right help, the government has a duty to do everything in its power to make that happen."
Ministers are this week set to release plans for tens of thousands of new youth apprenticeships and placements in the construction industry, and at accounting, consulting and legal firms.
Shadow Business and Trade Secretary Julia Lopez said: "Labour have been a disaster for youth jobs. Their tax hikes and red tape have made it harder for businesses to hire, invest and grow, destroying opportunities for young people looking to take their first step on the career ladder."
Burnham confirmed the long-awaited full review of young people and work will be published next month, and vowed to take its recommendations "seriously".
The review's author, former health secretary Alan Milburn, has argued for the need to "redistribute money from the welfare system to more employment support" in an interview with the Guardian, external published on Sunday.
"This is not a workshy, snowflake generation," Milburn said. "If we provide more opportunities and we provide more support, the overwhelming majority of young people will take that, because that's what they want. The system isn't delivering what young people want, which is a job."
Milburn calculated that the government spends 25 times more on benefits for young people than getting them into work, describing the current rate of Neets as "shameful".
Chancellor John Healey, who is due to hand down his first budget on 28 October, told the Labour party conference in September the government had a "moral duty" to address welfare spending.