Labour Targets Long Term Youth Unemployment With New Youth Guarantee Initiative

Labour Chancellor Rachel Reeves has announced a new initiative aimed at eradicating long-term youth unemployment in the UK. In her upcoming speech at the Labour Party Conference, Reeves will unveil details of the Government’s ambitious ‘youth guarantee’ plan, targeting those aged 18 to 21 who have been on Universal Credit for 18 months or longer.

The policy requires young people who have been on benefits for a year and a half to accept offers of education, training, or work placements. Should anyone in this group turn down a job without a reasonable excuse, their state benefits will be stopped. Reeves argued that continued reliance on welfare payments erodes the dignity of young people and stifles their future prospects.

Committed to addressing the sharp rise in the number of 16 to 24-year-olds not in education, employment, or training, Reeves outlined a three-pronged approach. Every young person will be offered either a college placement, an apprenticeship, or individualised one-to-one support to find work. Those still out of work after 18 months will be given paid work placements, gaining vital experience and new skills.

Reeves drew on Labour’s record, recalling the last time the party was in government and abolished long-term youth unemployment through similar reforms. She emphasised that helping young people into employment is essential not just for the individuals, but for business, the public purse, and the wider economy.

The Labour Government argues that its new youth policy will both support young people and reduce the burden of soaring welfare bills on taxpayers. Government officials suggest part of the programme may be funded through job creation in the public sector as well as support for private employers.

Shadow Chancellor Mel Stride raised concerns about the scheme, challenging its effectiveness following last year’s budget decisions which, he claims, made it more expensive for businesses to hire new staff, especially young recruits. He suggested that true job creation comes through lower taxes and economic growth rather than state-driven interventions.

Recent data signal underlying anxieties around the state of the British economy, with falling job vacancies and rising business pessimism. These economic headwinds heighten the urgency for policies tackling both youth unemployment and the increasing benefits bill. The efficacy of Labour’s youth guarantee may prove pivotal not only to thousands of young people but also to the broader health of the UK employment market.