CHANCELLOR UNVEILS WELFARE-TO-WORK PLAN – Reeves vows to abolish long-term youth unemployment
Chancellor Rachel Reeves has announced a strict new “Youth Guarantee” and doubled down on fiscal discipline in her Labour Party conference speech, while also igniting tensions within her own party.
The new scheme pledges to abolish long-term youth unemployment by offering every 18–24-year-old on Universal Credit for 18 months a paid job or training placement.
Those who refuse without a “reasonable excuse” will face sanctions, including the loss of benefits. Reeves framed the plan as a step toward building a society based on “contribution.”
On tax, the Chancellor reaffirmed her promise not to raise VAT but stopped short of ruling out an extension of the freeze on income tax thresholds in November’s Budget. She insisted her priority was to ensure the country’s finances “always add up.”
But Reeves also stirred controversy inside Labour, likening Greater Manchester Mayor Andy Burnham’s calls for more borrowing to the economic chaos of former Conservative Prime Minister Liz Truss.
She warned Burnham “risks going the way of Liz Truss,” in a pointed reminder of her determination to keep tight fiscal discipline and avoid market turbulence.
