Rachel Reeves to guarantee paid work for young people who are unemployed for 18 months

Young people who have not had a job or training for 18 months are offered a guaranteed paid work placement, Rachel Reeves is ready to announce.

Those who do not accept the offer can be confronted with their benefits.

In her speech for the annual LaRpool conference in Liverpool, the Chancellor promises “nothing less than the abolition of long -term youth unemployment”.

Van Reeves is also expected to argue for a society that is based on “contribution”, where “hard work is matched by fair reward”.

In an interview with the BBC, Reeves defended the record of Labor in the government after 15 months and emphasized it, although she admitted that there was “more to do”.

Before the November budget, with the Chancellor, it comes under pressure to balance public finances, while it also increases economic growth.

Reeves said that no companies had registered for the scheme yet, because it was not formally announced, but added that various business organizations had come to support.

The initiative builds on a “youth guarantee”, Announced last NovemberWho every 18 to 21-year-old in England had access to an internship, training, educational opportunities or help to find a job.

According to the new plans, every young person who has been on universal credit for 18 months is offered a guaranteed paid work placement without “earning or learning”.

Those who refuse to record the offer without a reasonable excuse will be confronted with sanctions such as losing their benefits.

The aim of the placements would be to help people build the skills to get a full -time job.

To an estimated one-on-IT 16 to 24-year-olds, there currently have no education, employment or training-on-depth 948,000 people- According to the latest figures.

The figures reached a peak of 11 years of 987,000 at the end of last year.

The new schedule will build on existing employment support and work placements that are supplied by the Department for Work and Pensions.

It will work with private companies, whereby the government expects companies to cover at least some of the wages for vacancies.

Reeves said that the scheme “would be supported by government money with a form of subsidy for those work placements”.

The government has not given a figure for the costs of the scheme, but it will be financed from existing budgets that were set out in the spending evaluation earlier this year.

Full details will be in the November budget, when the Chancellor explains the government’s tax and spending plans.

Reeves is confronted with a difficult budget, with economists who warn tax increases or cut cuts are needed for the Chancellor to meet her self -imposed loan rules.

Transferring whether she should draw up taxes, Reeves told the BBC “The world has changed in the past year” – pointing to wars in Europe and the middle -east, American rates and the global costs of borrowing.

“We are not immune to one of those things,” she added.

The Chancellor was also challenged whether the government would increase VAT.

Labor promised taxes on “working people”, in particular national insurance, income tax or VAT, not to be increased in its election manifesto last year.

Reeves repeated the prime minister’s insistence on Saturday that the commitments in Labor’s Manifesto Stand.

She said that the government “had protected the wage packages of working people and that we did not put the prices in the stores”, and added: “That is very important to me.”

In her speech from the conference, the Chancellor is expected to say: “I will never be satisfied, while the potential of too many people is wasted, frozen from work, education or training. There is no defense.

“It is bad for business, bad for taxpayers, bad for our economy, and it teaches people’s prospects throughout their lives.”

She will add: “Just like the last Labor government, with her new deal for young people, has abolished long-term youth unemployment, I can commit this government to nothing less than the abolition of long-term youth unemployment.”

The announcement was welcomed by the federation of small companies as “extremely important”.

The policy chairman of the group, Tina McKenzie, said: “Reprioring expenditure on employment programs that do not work on this type of schemes is exactly the way to get the much needed bang for taxpayers.”

She added: “The key to get the details good is to ensure that there is a backstop offer to those who are now more than 25, in particular people with health challenges; that young people without work for health reasons are not excluded by miserable double financing rules; and that small companies are able to play a complete role in the delivery of the scheme.”

However, there are questions about whether companies that are confronted with pressure, including increases from the contributions of the national insurance policies and the national minimum wage could accept a large numbers of new employees.

The number of vacancies in the UK has fallenAchieving their lowest level since the Pandemie earlier this year.

In her speech, Reeves will also explain her faith in a “Great Britain based on opportunities”, where “ordinary children can flourish, unhindered by their background”.

“I believe in a great Britain that is based on a contribution – where we do our duty for each other, and where hard work is matched by honest reward,” is expected from her.

It comes together after the influential think tank work Published a report last week The argumentation of the government must state the idea of ​​”contribution” – that if you pay the system, you should be able to see what you are doing – in the heart of the agenda.

The Chancellor will also promise to finance a library in every primary school in England.

Approximately one-to-do state base schools in England-Ongeveer 1,700-Hebben No library, according to figures from the National Literacy Trust, which rises to one-on-four for disadvantaged areas.