Reeves fails to reveal cost of new 'youth guarantee' benefits crackdown

A "youth guarantee" which sees all young people on Universal Credit offered work after 18 months on benefits is set to be announced by Chancellor Rachel Reeves during a speech at Labour's conference.

She will say that Britain must be built on the principles of doing "our duty for each other" and "hard work matched by fair reward" in a speech to Labour's annual conference.

However, Ms Reeves told Nick Ferrari she could not reveal the cost of the new system.

The Chancellor said "this is not about spending new money, this is about how we're allocating the money."

"All of the precise numbers can be set out in the budget, but this is about allocating money from the spending review."

She added: "All of the money I will set out in the budget, but the skills and the training that's already been allocated through the budget and through the spending review that I set out just before the summer."

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The guarantee, which will be overseen by Work and Pensions Secretary Pat McFadden, forms part of a pledge of "nothing less than the abolition of long-term youth unemployment", Ms Reeves will say.

Speaking exclusively to LBC, Mr McFadden said: “A Youth Guarantee – meaning opportunity is not just for the few, but for all.

“And with that opportunity comes responsibility too - to take up the training, the apprenticeship or the work that is offered.”

In her speech, Ms Reeves is expected to say: "I believe in a Britain founded on contribution - where we do our duty for each other, and where hard work is matched by fair reward.

"I believe in a Britain based on opportunity - where ordinary kids can flourish, unhindered by their background.

"And I believe that Britain's real wealth is found not only in the success of the fortunate few, but in the talents of all our people, in every part of our great country."

The focus on "contribution" comes amid concerns among some in Labour that the Government needs to offer voters a clearer vision of its agenda.

Sir Keir Starmer has previously avoided using buzzwords to define his politics, but influential think tank Labour Together published a paper last week in which it argued the concept of contribution should be put at the heart of policy-making.

Ms Reeves is expected to add: "We won't leave a generation of young people to languish without prospects - denied the dignity, the security and the ladders of opportunity that good work provides.

"Just as the last Labour government, with its new deal for young people, abolished long-term youth unemployment I can commit this Government to nothing less than the abolition of long-term youth unemployment. We've done before and we'll do it again."

Richard Rigby, Head of UK Government Affairs at The King’s Trust said: “The King's Trust welcomes today's ambition to end long-term youth unemployment.

“As young people navigate an ever-changing world of work, tackling long-term unemployment isn’t just urgent — it’s essential to building a future workforce where no talent is left behind.

“Potential is everywhere, but opportunity is not. We know how tough it can be for young people without work experience to get their first career break. Despite their efforts, many are struggling to get a foot on the career ladder. For those at risk of being left behind, access to paid work placements could be truly transformative.

“We stand ready to work with governments and employers to open new opportunities and ensure every young person has the chance to thrive.”