Education

Rachel Reeves to announce major change for benefit claimants between 18 and 21

By Kieran Isgin

Copyright manchestereveningnews

Rachel Reeves to announce major change for benefit claimants between 18 and 21

Young people across the UK could be at risk of losing their benefits due to proposed changes from the government. Chancellor Rachel Reeves is expected to announce changes over benefits for people aged between 18 and 21 . People in this age group who are unemployed over a long period will reportedly be guaranteed paid work. However, if they refuse such work, they could have their benefits taken away from them. The Chancellor is set to reveal these plans in a Labour conference speech today (Monday, September 29) just two months before she is set to reveal new economic policies in the Budget. It is believed Reeves will make the case for a society based on ‘contribution’ where “hard work is matched by fair reward.” Her speech in Liverpool is also expected to describe a Britain built on doing “our duty for each other”. Currently, one in eight 16 to 24-year-olds are not in employment, education, or training. Data from the Office for National Statistics (ONS) for May to July of this year highlighted that 621,000 people in this age group were unemployed, 3,000 more than the year before. Meanwhile, there were 2.95 million people in the same age group who were classed as ‘economically inactive’. Despite this, the employment rate for young people was up from 50.7% to 52% while the inactivity rate was down from 40.9% to 39.7%. The ‘youth guarantee’ scheme was announced last November as a way to ensure that young people have guaranteed access to apprenticeships and training as part of a government strategy to boost the workforce. At the time, Sir Keir Starmer said the government inherited a country that “isn’t working” and pledged to tackle some of the largest contributors to unemployment and economic inactivity. The government also pledged to increase the employment rate from 75% to 80% – bringing in roughly two million more people into the workforce. Now 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.” The Chancellor’s speech at the conference will also include announcements on funding for libraries for the 1,700 English primary schools that currently do not have one. 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”. Furthermore, Ms Reeves will also announce new rules to bring forward British-built ships and steel. Her speech is expected to focus on building a strong economy that depends on domestic steel capacity, defence capability, and energy security