Reeves to guarantee paid work for young people unemployed for 18 months

[mwai_chat context=”Let’s have a discussion about this article:nn51 minutes agoShareSaveBecky MortonPolitical reporterShareSavePA MediaYoung people who have been out of a job or education for 18 months will be offered a guaranteed paid work placement, Rachel Reeves is set to announce.Those who do not to take up the offer could face being stripped of their benefits.In her speech to Labour’s annual conference in Liverpool, the chancellor will promise “nothing less than the abolition of long-term youth unemployment”. Reeves is also expected to make the case for a society founded on “contribution”, where “hard work is matched by fair reward”.In an interview with the BBC on Monday, Reeves defended Labour’s record after 15 months in government and highlighted achievements it had made, though she admitted there was “more to do”.Reeves said no businesses had yet signed up to the scheme as it has not yet been formally announced, but said that several business organisations had come out in support.It comes ahead of November’s Budget, with the chancellor under pressure to balance the public finances, while also boosting economic growth.The scheme builds on a “youth guarantee”, announced last November, which promised every 18 to 21-year-old in England access to an apprenticeship, training, education opportunities or help to find a job.Under the new initiative, every young person who has been on Universal Credit for 18 months without “earning or learning” will be offered a guaranteed paid work placement.Those who refuse to take up the offer without a reasonable excuse will face sanctions such as losing their benefits.The aim of the placements would be to help people build up the skills to get a full-time job.An estimated one-in-eight 16-24-year-olds are not currently in education, employment or training – around 948,000 people – according to the latest figures.The numbers hit an 11-year high of 987,000 at the end of last year.The new scheme will build on existing employment support and work placements delivered by the Department for Work and Pensions.It will work with private companies, with the government anticipating businesses would cover at least some of the wages for job placements.The government has not given a figure for the cost of the scheme but it will be funded from existing budgets set out in the spending review earlier this year.Full details will be set out in November’s Budget, when the chancellor sets out the government’s tax and spending plans.Reeves is facing a difficult Budget, with economists warning tax rises or spending cuts will be needed for the chancellor to meet her self-imposed borrowing rules.In an interview with BBC Breakfast, the chancellor was challenged over whether the government would increase VAT.Labour promised not to increase taxes on “working people”, specifically National Insurance, income tax or VAT, in its election manifesto last year.Reeves repeated the prime minister’s insistence on Saturday that the commitments in Labour’s manifesto stand.She said the government had “protected the pay packets of working people and we did not put up the prices in the shops”, adding: “That’s very important to me.”In her conference speech, 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.”She will add: “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.”The announcement was welcomed by …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]