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Reeves to Unveil Youth Guarantee With Sanctions for 18–21s Who Refuse Offers

The plan promises education, training or paid placements after 18 months on Universal Credit with support contingent on taking a route back into work.

Overview

  • Rachel Reeves will set out the scheme at Labour’s Liverpool conference, billing it as a route to abolish long‑term youth unemployment.
  • Eligible 18–21‑year‑olds on Universal Credit for 18 months will be offered college places, apprenticeships, one‑to‑one job support or a paid work placement.
  • Young people who reject an offer without a reasonable excuse could face benefit sanctions up to losing payments, with rules for sickness claimants still to be clarified.
  • The government plans to subsidise placements and is expected to seek roles from large retailers, with funding details to be outlined in November after earlier pilots with local authorities.
  • The Federation of Small Businesses welcomed the focus on effective support, while Shadow Chancellor Sir Mel Stride attacked the plan as undermined by last year’s employer National Insurance rise; around one in eight 16–24‑year‑olds are currently NEET.