However, The i Paper understands that those who refuse the guaranteed job offered to them could face sanctions, including losing part or all of their benefits, if they turn it down without a good excuse.
“I can commit this government to nothing less than the abolition of long-term youth unemployment. We’ve done it before and we’ll do it again,” she will say.
Full details of the scheme, including how sanctions will operate, are due ahead of the Budget in November. Reeves will also use the Budget to set out the details of the funding settlement for the scheme.
The i Paper understands that ministers are reportedly weighing up a number of options — from removing the cap entirely, to restricting it to families with no working parent, or shifting to a three-child cap — but no final decision has yet emerged.
At the same time, dropping or altering the cap would carry a multibillion-pound price tag at a moment when Reeves is already battling tight fiscal constraints.
Work and Pensions Secretary Pat McFadden (Photo: James Manning/PA Wire)After a costly retreat on welfare savings earlier this year, she has warned MPs that she has limited room to manoeuvre.
But she added that the design of the scheme must provide “a backstop offer to those who are now over-25, particularly those with health challenges”, while making sure that small firms are “enabled to play a full role in delivery”.
In her speech on Monday, the Chancellor is expected to say: “I will never be satisfied while too many people’s potential is wasted, frozen out of employment, education, or training. There’s no defending it. It’s bad for business, bad for taxpayers, bad for our economy, and it scars people’s prospects throughout their lives.
Under the plans, every young person will be offered a college place, an apprenticeship or one-to-one help to find work when they leave school. Anyone still out of work and on benefits after 18 months will be guaranteed a paid placement.
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The Youth Guarantee was one of Labour’s key election pledges and follows in the footsteps of earlier programmes such as the New Deal for Young People, introduced under Tony Blair in the late 1990s.
That review also committed £1.2bn a year for skills and training by the end of the period, money Reeves said would provide the backbone of the Youth Guarantee. The package covers apprenticeships, extra college places and tailored support for those not in education, employment or training.
The Treasury described it as the most significant rise in skills funding in over a decade, expected to benefit more than 1.3 million 16- to 19-year-olds. A further £625m was set aside over four years to train up to 60,000 new construction workers, part of a broader drive to ease shortages in critical sectors.
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