A former chief executive of Marks & Spencer has been named as a government adviser on employment, marking the latest effort to confront the escalating crisis of youth unemployment.

Marc Bolland, who led the high street retailer between 2010 and 2016, is set to chair a summit bringing together senior business figures, as concerns grow that the UK could face a “lost generation” without swift and decisive action.

Roughly 1 million young people aged 16 to 24 — around one in eight — are currently not in education, employment or training. An interim review released on Thursday by former health secretary Alan Milburn warned that this group, commonly referred to as Neets, could rise to 1.25 million by the 2030s unless significant reforms are introduced.

Following the report’s conclusions, Downing Street confirmed on Saturday that Bolland has been appointed lead non-executive director at the Department for Work and Pensions (DWP).

Bolland, who previously ran Morrisons supermarket, is believed to have secured the role due to his ongoing collaboration with the DWP through his charity, Movement to Work. According to the government, partnerships with the charity have already supported more than 200,000 unemployed young people into jobs.

Officials stated that Bolland will partner with “leading chief executives across sectors” to develop clearer pathways into employment and address the long-standing issue of youth joblessness.

He will also provide guidance to the work and pensions secretary, Pat McFadden, on how best to respond to Milburn’s recommendations. McFadden described the appointment as a “clear signal” that the government is determined to confront the youth unemployment challenge.

A key aspect of Bolland’s responsibilities will involve working closely with charities that assist disabled young people, ensuring they can access appropriate training and job opportunities.

Bolland said he felt “honoured and deeply committed” to supporting the government’s efforts. He added: “By working closely with businesses to back young people, we can give them the strongest possible foundation for future success.”

The share of Neets in the UK stands notably higher than in many comparable nations. In the Netherlands, around 5% of 16- to 24-year-olds are outside education or employment, compared with approximately 12.5% in Britain.

Milburn’s findings showed that six in 10 young people have never held a job, up from four in 10 in 2005. The wider economic impact of the situation is estimated at around £125bn.

He also highlighted a rise in the number of young people deemed unable to work due to health conditions, including anxiety, depression and neurodevelopmental disorders.

Despite this, for every £25 spent on benefits for young people, only £1 is allocated to helping them secure employment. Nearly half of those who begin claiming health or disability benefits before the age of 24 remain out of work or education ten years later.