Everton have placed Sam Allardyce in charge, after what has been a disappointing start to the season.
Everton were said to be considering Hull City boss Marco Silva and Burnley manager Sean Dyche, after parting company with Ronald Koeman.
However, the Toffees have ended up moving for Allardyce.
Everton initially failed to agree a deal with Allardyce, but after struggling to find anybody else, they returned to the experienced boss and thrashed out a contract.
And Neville believes that Everton have shown just how desperate they are by placing the former England boss in charge.
“Everton have been up and down, backward and forward, looking at Marco Silva and Sean Dyche,” he said.
“They’ve not been sure what they wanted and the fear of relegation has made them become desperate.
“What I see is survival football, which is very different to entertaining football. It is necessity over style and it’s got to a point where young players and young managers are getting less and less chances.
“It means that the quality of British football suffers, with the purpose to stay up and reality of it is that there needs to be fundamental change with government intervention.”
Everton have badly disappointed so far this season, and fears that they could be relegated were growing.
The Toffees did manage to pick up a 4-0 victory against West Ham United last night though, which has relieved some of the pressure on them.
Allardyce will take charge of Everton for the first time this weekend, when they Merseyside club take on Huddersfield Town.
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