Watch live as Rachel Reeves delivers her Labour party conference speech on Monday (29 September).
In her address in Liverpool, the Chancellor will announce that all people aged 18 to 21 who have been out of work for 18 months will be given jobs as part of plans to tackle unemployment.
Known as a “youth guarantee”, it intends to ensure that 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.
If young people refuse to take the jobs without a reasonable excuse, they will face sanctions such as losing their benefits.
She plans to promise “nothing less than the abolition of long-term youth unemployment”.
Reeves is also expected to outline her approach to the Budget, which will be unveiled in November.
“There are a lot of people who claim to know what is going to be in my budget. They don’t,” she told the BBC on Monday ahead of her keynote speech.
“A lot of them are talking rubbish, and frankly, a lot of it is very irresponsible. People were told last year that I was going to do this, I was going to do that, and people made decisions with their money that often were irreversible decisions.”
Many in her party are demanding she breaks the manifesto promise of not hiking income tax, VAT or employee contributions to national insurance.