Reeves to set out guarantee of paid work to cut long-term youth unemployment

Long-term unemployed youths will be guaranteed paid work and could face being stripped of benefits if they refuse to take it up, Rachel Reeves will announce.

The Chancellor will make the case for a society founded on “contribution” as she unveils plans for a “youth guarantee” aimed at driving down unemployment.

In a Labour conference speech two months before a Budget which is expected to involve tough decisions on tax and spending, Ms Reeves will also set out plans to fund libraries in all English primary schools and pledge measures to support British steelmaking and shipbuilding.

And she will promise a “hit squad” of investigators will target Covid fraudsters to hit them with fines of up to 100% of the value of the money they swindled from the taxpayer.

The Chancellor is expected to use her speech in Liverpool to say that British society must be built on the principles of doing “our duty for each other” and “hard work matched by fair reward”.

Under plans to be announced on Monday, every young person who has received universal credit benefits for 18 months without “earning or learning” will be guaranteed an offer of a paid work placement.

Claimants will face sanctions such as losing their benefits if they refuse to take up jobs under the scheme without a reasonable excuse, the PA news agency understands.

One in eight 16 to 24-year-olds are currently not in education, work, or training.

Ms Reeves is expected to 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.”

The guarantee, which will be overseen by Work and Pensions Secretary Pat McFadden, forms part of a pledge of “nothing less than the abolition of long-term youth unemployment”.

The Chancellor is expected to say: “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 said: “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 measures in Ms Reeves’s speech will include funding for a library to the 1,700 English primary schools currently without one.

The promise, which the Chancellor will say demonstrates “Labour values in action”, will be funded from £132.5 million of dormant 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”.

Ms Reeves will announce new rules to prioritise British-built ships and steel, arguing that will support national security.

She will say: “A strong economy must rest on strong foundations: Domestic steel capacity, defence capability, and energy security.”

The announcement will also see British jobs and manufacturing prioritised in strategically important areas when the Government procures from businesses.

Ms Reeves will say: “Where things are made, and who makes them, does matter.”

Home Secretary Shabana Mahmood will also deliver her conference speech on Monday, promising tougher rules for immigrants.

She will say migrants who want indefinite leave to remain in the UK will have to learn English to a high standard, have a clean criminal record and volunteer to show their worth to society.

Ms Mahmood will argue that toughness on immigration and law and order are essential components of an “open, generous, tolerant” country.

Published: 29/09/2025 by Radio NewsHub