Young people on benefits must work under new plan

Chancellor set to unveil proposals to tackle unemployment

- DAVID MADDOX

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 today.

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.