Labour fights back with paid work for all jobless young people - or face sanctions

Labour will today promise a paid job for all young people as part of a new Youth Guarantee. Chancellor Rachel Reeves will unveil the scheme – along with benefits sanctions for those who turn it down. She will say: “Too many people’s potential is wasted.”

In today’s conference speech, she will dangle the carrot of paid work to any young person who has been out of work and education for 18 months.

But the stick is that those who turn down the scheme could lose their benefits. The government is fighting to get more young people into work, with one in eight aged 16-24 currently not in education, work or training.

The Chancellor will commit to eradicating long term youth unemployment, saying: "We won’t leave a generation of young people to languish without prospects."

In a major speech to Labour conference in Liverpool, she will say that Britain must be built on contribution "where we do our duty for each other, and where hard work is matched by fair reward".

She will unveil plans for every young person who has been on Universal Credit for 18 months without earning or learning will be guaranteed an offer of paid work.

But people could face sanctions such as losing their benefits if they don't have a reasonable excuse for taking up the scheme.

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It comes as the Government battles to get more young people into work, with one in eight 16-24-year-olds currently not in education, work, or training.

Botched efforts to impose cuts to disability benefits in the summer have left Ms Reeves scrambling to balance the books in the upcoming Budget.

Newly appointed Work and Pensions Secretary Pat McFadden has been tasked with overhauling the benefits system to address rising costs and get more people back into work.

In a speech to party faithful, Ms Reeves will 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."

She will set out plans to fund a new Youth Guarantee, where every youngster will be guaranteed a college place or an apprenticeship, or one-on-one support to find a job.

And anyone out of work for 18 months will be given a paid work placement.

Ms Reeves will say: "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 it before and we’ll do it again.”

The Chancellor will use her speech to spell out her ambitions to break down barriers for working class children.

She will say: "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.”

In a speech today, Mr McFadden will say the plans will give all young people "a chance to get up and get on". He 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."

In a sign of the approach the Government will take, he will add: "A Youth Guarantee – meaning opportunity is not just for the few, but for all. And with that opportunity comes responsibility too - to take up the training, the apprenticeship or the work that is offered.”

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