Younger individuals who have been out of a job or training for 18 months shall be supplied a assured paid work placement, Rachel Reeves is ready to announce.
Those that do to not take up the supply might face being stripped of their advantages.
In her speech to Labour’s annual convention in Liverpool, the chancellor will promise “nothing lower than the abolition of long-term youth unemployment”.
Reeves can also be anticipated to make the case for a society based on “contribution”, the place “laborious work is matched by truthful reward”.
It comes forward of November’s Funds, with the chancellor below strain to steadiness the general public funds, whereas additionally boosting financial progress.
The scheme builds on a “youth assure”, announced last November, which promised each 18 to 21-year-old in England entry to an apprenticeship, coaching, training alternatives or assist to discover a job.
Underneath the brand new initiative, each younger one that has been on Common Credit score for 18 months with out “incomes or studying” shall be supplied a assured paid work placement.
Those that refuse to take up the supply with out a affordable excuse will face sanctions resembling shedding their advantages.
The goal of the placements can be to assist folks construct up the talents to get a full-time job.
An estimated one-in-eight 16-24-year-olds usually are not at the moment in training, employment or coaching – round 948,000 folks – according to the latest figures.
The numbers hit an 11-year excessive of 987,000 on the finish of final yr.
The brand new scheme will construct on present employment help and work placements delivered by the Division for Work and Pensions.
It should work with personal corporations, with the federal government anticipating companies would cowl no less than a few of the wages for job placements.
The federal government has not given a determine for the price of the scheme however will probably be funded from present budgets set out within the spending evaluate earlier this yr.
Full particulars shall be set out in November’s Funds, when the chancellor units out the federal government’s tax and spending plans.
Reeves is going through a tough Funds, with economists warning tax rises or spending cuts shall be wanted for the chancellor to fulfill her self-imposed borrowing guidelines.
In her convention speech, the chancellor is predicted to say: “I’ll by no means be happy whereas too many individuals’s potential is wasted, frozen out of employment, training, or coaching. There is no defending it.
“It is dangerous for enterprise, dangerous for taxpayers, dangerous for our economic system, and it scars folks’s prospects all through their lives.”
She is going to add: “Simply because the final Labour authorities, with its new deal for younger folks, abolished long-term youth unemployment I can commit this authorities to nothing lower than the abolition of long-term youth unemployment.”
The announcement was welcomed by the Federation of Small Companies as “vastly necessary”.
The group’s coverage chair, Tina McKenzie, mentioned: “Reprioritising spending from employment programmes which are not working to one of these scheme is precisely the best way to get much-needed bang for taxpayer money.”
She added: “Key to getting the small print proper is ensuring there’s a backstop supply to those that at the moment are over-25, significantly these with well being challenges; that younger folks out of labor for well being causes usually are not excluded by misguided double funding guidelines; and that small companies are enabled to play a full function within the supply of the scheme.”
Nonetheless, there are questions over whether or not companies going through pressures together with will increase in Nationwide Insurance coverage Contributions and the Nationwide Minimal Wage would be capable to tackle massive numbers of recent employees.
The number of job vacancies in the UK has been falling, hitting their lowest stage for the reason that pandemic earlier this yr.
In her speech, Reeves may also set out her perception in a “Britain based mostly on alternative”, the place “extraordinary youngsters can flourish, unhindered by their background”.
“I imagine in a Britain based on contribution – the place we do our obligation for one another, and the place laborious work is matched by truthful reward,” she is predicted to say.
It comes after the influential assume tank Labour Collectively published a report last week arguing the federal government ought to put the concept of “contribution” – that in case you pay in to the system, it is best to be capable to see what you get out of it – on the coronary heart of its agenda.
The chancellor may also pledge to fund a library in each main college in England.
Round one-in-seven state main colleges in England – roughly 1,700 – wouldn’t have a library, in keeping with figures from the Nationwide Literacy Belief, rising to one-in-four for deprived areas.
