Chancellor Rachel Reeves will announce a major crackdown on long-term youth unemployment, warning that young people could lose their benefits if they refuse job offers after 18 months on Universal Credit.
Unveiling the new Youth Guarantee, Reeves will promise paid work placements for 18 to 21-year-olds who have been out of work, education, or training for over 18 months. Those who turn down job offers without a valid reason could face sanctions, including loss of benefits.
The scheme, to be outlined at the Labour Party Conference in Liverpool, will be funded through government subsidies and aims to engage major employers like national retailers. The policy targets the UK’s one in eight young people currently classed as NEET (Not in Education, Employment or Training).
Reeves is expected to say, “she will never be satisfied while people’s potential is wasted. Every young person will be guaranteed either a college place, an apprenticeship, one-to-one job support or a paid work placement.”
Work and Pensions Secretary Pat McFadden will also stress the balance between opportunity and responsibility.”With opportunity comes responsibility – to take up the training, apprenticeship, or job that’s offered.”
The Federation of Small Businesses welcomed the plan, calling it a better use of funding than current underperforming employment schemes.
However, Shadow Chancellor Sir Mel Stride criticised Reeves, highlighting what he sees as a contradiction, “In her first Budget, she imposed a £25bn Jobs Tax by raising National Insurance, making it more expensive to hire especially young peopeople.
Reeves will also reaffirm Labour’s core values,”I believe in a Britain where hard work is matched by fair reward.”
Meanwhile, debate continues within Labour over the future of the two-child benefit cap, with Housing Secretary Steve Reed saying it should be lifted “when we can afford it.”
