Rachel Reeves delivered her Labour party conference speech on Monday (29 September).
In her address in Liverpool, the Chancellor announced that all people aged 18 to 21 who have been out of work for 18 months will be given jobs as part of plans to tackle unemployment.
Known as a “youth guarantee”, it intends to ensure that 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.
If young people refuse to take the jobs without a reasonable excuse, they will face sanctions such as losing their benefits.
She planned to promise “nothing less than the abolition of long-term youth unemployment”.
Reeves also hinted to more tough decisions ahead, but avoided sharing specifics on the Autumn Budget, when Labour is expected to need to raise a reported £30 million.
She says: “This year has brought its fair share of challenges for our party and our country.
“They won’t be the last. We’ve turned our backs on the path of decline, and we’ve chosen investment, but there is further to go.”
Many in her party are demanding she breaks the manifesto promise of not hiking income tax, VAT or employee contributions to national insurance.
