The Chancellor is set to outline major new plans based on ‘hard work’. Young people across the UK could face losing their benefits due to proposed changes from the government. Rachel Reeves is set to announce restrictions on benefits for those aged between 18 and 21.
Long-term unemployed people in this age bracket will reportedly be guaranteed paid work. However, if they decline such work, they could see their benefits removed.
The Chancellor is poised to unveil these plans in a Labour conference speech today (Monday, September 29), just two months before she is expected to disclose new economic policies in the Budget.
Reeves is believed to be calling for a society based on ‘contribution’, where « hard work is matched by fair reward. »
Her speech in Liverpool is also set to portray a Britain built on fulfilling « our duty for each other ».
Unemployment for young people
Currently, one in eight 16 to 24 year olds are not in employment, education, or training. Figures from the Office for National Statistics (ONS) for May to July of this year revealed that 621,000 people in this age group were jobless, an increase of 3,000 from the previous year.
Meanwhile, there were 2.95 million people in the same age group who were categorised as ‘economically inactive’. Despite this, the employment rate for young people rose from 50.7% to 52%, while the inactivity rate fell from 40.9% to 39.7%.
The ‘youth guarantee’
The ‘youth guarantee’ initiative was unveiled last November as a means to ensure young people have guaranteed access to apprenticeships and training as part of a government strategy to enhance the workforce. At that time, Sir Keir Starmer said the government inherited a nation that « isn’t working » and vowed to address some of the biggest factors behind unemployment and economic inactivity.
The government also committed to raising the employment rate from 75% to 80% – bringing approximately two million additional people into employment. The Chancellor is set to declare: « 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. »
Shadow chancellor Sir Mel Stride remarked: « Rachel Reeves says she wants to abolish youth unemployment – yet in her very first budget she introduced a £25 billion jobs tax that made it more expensive for businesses to hire, especially young people. »
Other plans set to be announced by the Chancellor
Ms Reeves’s speech at the conference will also include funding for libraries for the 1,700 English primary schools that currently do not have one. It is believed this will be funded by £132.5 million of latent assets.
Jonathan Douglas, chief executive of the National Literacy Trust, said the announcement was « game-changing and a monumental milestone for the Libraries for Primaries campaign ».
Furthermore, Ms Reeves will also announce new rules to bring forward British-built ships and steel. Her speech is expected to focus on building a strong economy that depends on domestic steel capacity, defence capability, and energy security.
