Rachel Reeves to announce scheme to drive down youth unemployment as chancellor gives speech at Labour conference – UK Times

Young people who have been out of work for 18 months will be given jobs under new plans to tackle unemployment, Rachel Reeves will announce.

The chancellor is set to use her speech at the Labour party conference to unveil a “youth guarantee”, meaning every young person who has received universal credit (UC) benefits for 18 months without “earning or learning” will be offered paid work, an apprenticeship or a place at college.

It is understood claimants will face sanctions such as losing their benefits if they refuse to take up jobs under the scheme without a reasonable excuse.

The guarantee forms part of a pledge of “nothing less than the abolition of long-term youth unemployment”, Ms Reeves will say, as she vows to build an economy that works for working people – and rewards them.

The chancellor will also outline her approach to the Budget in November with many in her party demanding she breaks the manifesto promise of not hiking income tax, VAT or employee contributions to national insurance.

Many more are demanding she brings in wealth taxes on the super rich and biggest corporations – something she will hint at as she makes it clear she wants everyone to pay their fair share.

She is expected to say Britain must be built on the principles of doing “our duty for each other” and “hard work matched by fair reward”.

“I believe in a Britain founded on contribution – where we do our duty for each other, and where hard work is matched by fair reward,” she will tell the conference in Liverpool.

“I believe in a Britain based on opportunity – where ordinary kids can flourish, unhindered by their background.

“And I believe that Britain’s real wealth is found not only in the success of the fortunate few, but in the talents of all our people, in every part of our great country.”

The announcement comes as part of Labour’s determination to get Britain working and provide targeted support for young people at risk of long-term unemployment. One in eight 16–24-year-olds are currently not in education, work, or training, having risen by almost a third over the last four years under the Conservatives.

The chancellor is expected to say: “I will never be satisfied while too many people’s potential is wasted, frozen out of employment, education, or training. There’s no defending it.

“It’s bad for business, bad for taxpayers, bad for our economy, and it scars people’s prospects throughout their lives.

“Every young person will be guaranteed either a place in a college, for those who want to continue their studies or an apprenticeship, to help them learn a trade vital to our plans to rebuild the country, or one-to-one support to find a job.

“But more than that our guarantee will ensure that any young person out of work for 18 months will be given a paid work placement. Real work, practical experience, and new skills.

“We won’t leave a generation of young people to languish without prospects – denied the dignity, the security and the ladders of opportunity that good work provides.”

The focus on “contribution” comes amid concerns among some in Labour that the government needs to offer voters a clearer vision of its agenda.

Sir Keir Starmer has previously avoided using buzzwords to define his politics, but influential think tank Labour Together published a paper last week in which it argued the concept of contribution should be put at the heart of policy-making.

Ms Reeves is expected to add: “We won’t leave a generation of young people to languish without prospects – denied the dignity, the security and the ladders of opportunity that good work provides.

“Just as the last Labour government, with its new deal for young people, abolished long-term youth unemployment I can commit this Government to nothing less than the abolition of long-term youth unemployment. We’ve done before and we’ll do it again.”

Cabinet minister Mr McFadden will say: “Almost a million young people are not in education, employment or training. We will not stand by while a generation is consigned to benefits almost before they’ve begun.

“We will not accept that school pupils full of promise become adults full of frustration. We cannot – we will not – allow wasted talent to become Britain’s story.

“The youth guarantee is how we will offer every young person a chance to get up and get on.”