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Sunday 28 September 2025 10:30 pm  |  Updated:  Sunday 28 September 2025 3:14 pm

Rachel Reeves announces youth guarantee to combat long-term unemployment

By: Morning Wire reporter

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GDP growth is expected to have held broadly steady in April (Image: PA)

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

The Chancellor is expected to say Britain must build on the principle of doing “our duty for each other” and “hard work matched by fair reward”, in a speech to Labour’s party conference.

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

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.

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”, Ms Reeves will say.

The Chancellor is expected to say: “I believe in a Britain founded on contribution – where we do our duty for each other, and where hard work is matched by fair reward.

“I believe in a Britain based on opportunity – where ordinary kids can flourish, unhindered by their background.

“And I believe that Britain’s real wealth is found not only in the success of the fortunate few, but in the talents of all our people, in every part of our great country.”

Read more

Bank of England governor opens door to ‘simplifying’ financial rulebook

Bank of England Governor Andrew Bailey said cited several indicators that the labour market was softening.

The focus on “contribution” comes amid concerns among some in Labour that the Government needs to offer voters a clearer vision of its agenda.

Sir Keir Starmer has previously avoided using buzzwords to define his politics, but influential think tank Labour Together published a paper last week in which it argued the concept of contribution should be put at the heart of policy-making.

Ms Reeves is expected to add: “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.

“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. We’ve done before and we’ll do it again.”

Cabinet minister Mr McFadden will say: “Almost a million young people are not in education, employment or training. We will not stand by while a generation is consigned to benefits almost before they’ve begun.

“We will not accept that school pupils full of promise become adults full of frustration. We cannot – we will not – allow wasted talent to become Britain’s story.

“The youth guarantee is how we will offer every young person a chance to get up and get on.”

By Nina Lloyd, PA Political Correspondent

Read more

Rachel Reeves’ sister takes top legal role in Burnham’s Cabinet overhaul

Close-up of a business professionals hands typing on a laptop keyboard with financial charts on screen

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