Young people who have been out of work for more than 18 months will be guaranteed a job under a new Labour scheme — but those who turn down the offer risk losing their benefits.

Chancellor Rachel Reeves is set to unveil the “youth guarantee” at the Labour Party conference in Liverpool today, promising what she calls “nothing less than the abolition of long-term youth unemployment.”

Speaking to Sky News this morning, Reeves highlighted the scale of the challenge:

"There are almost a million young people who are not in education, employment or training.  That has a terrible impact on them throughout their lives, there is loads of evidence that shows if you are out of work for long periods early on in what should be the beginning of your working life, then you’re more likely to experience other bouts of unemployment, lower wages, mental health problems.’

Currently, around one in eight people aged 16–24 are not in education, work, or training — a number that has jumped by nearly a third over the past four years.

Reeves insisted more details on funding will come in November’s Budget, but said the goal is simple: get young people into work and stop wasted potential.

Not everyone is convinced, though. Roman Dibden, CEO of youth employment charity Rise Up UK, warned that removing benefits could backfire:

‘If you push somebody into an environment that isn’t right for them, there’s a good chance they’ll drop out. And we know that soft skills are a key issue here,’ he said.

He added: ‘What are we doing for the young people who are still missing those foundational soft skills? It’s not just about creating placements, it’s about building the pathways into them.’

Reeves is also preparing to deliver tough choices in November as she works to close a £30 billion gap in public finances, with economists expecting the UK’s productivity forecasts to be downgraded.

Photo by PAUL FARMER / Job Centre Plus / CC BY-SA 2.0, Wikimedia commons.