Rachel Reeves’s so-called “youth jobs guarantee” should have been a welcome announcement. Nearly a million young people are not in education, employment, or training — or ‘NEET’. Far too many young people are being denied the opportunity of work, instead parked on benefits.
Labour’s jobs tax has killed jobs for young people especially in sectors like hospitality where many earn their first pay cheque. The idea that Rachel and Keir have woken up to this and were going to fix the problem sounded promising. Yet within hours the pledge had unravelled. What was billed as a bold new commitment was revealed as little more than rhetoric.
First, we were told this was about jobs. Yet when challenged, the Chancellor quickly watered it down: apprenticeships, training courses, or college places could all “count” as part of the offer.
Nobody opposes supporting young people into training or apprenticeships — they are vital routes into work. But this was what Labour has already committed to, not something new to announce. By rebranding existing entitlements as something new, Labour risks misleading young people and setting them up for failure.
The second flaw is just as glaring. Not a single employer has been named to give people these jobs or placements. We don’t know how many of these opportunities exist, or whether businesses have signed up at all. Announcing first and negotiating later is not policy-making — it is headline-chasing. This is no guarantee at all.
And crucially, this pledge excludes young people on sickness or disability benefits. That means it will do little to address the deeper challenge of moving those on long-term state support into work. Without tackling that, Labour’s reforms will fail to move the needle on welfare dependency.
The contradictions mount. Reeves says she wants to abolish youth unemployment, yet in her first Budget she imposed a £25 billion Jobs Tax, making it more expensive to hire — especially younger workers. The government’s own Employment Rights Bill admits it will deter employers from taking them on. No wonder business confidence is plummeting, and unemployment is rising.
By contrast, between 2010 and 2024, youth unemployment fell by nearly 380,000 under the Conservatives, giving more young people the security of work. That progress is now at risk.
If Labour is serious about welfare reform, the Prime Minister would accept Kemi Badenoch’s offer to work cross-party to bring down the welfare bill. Only then can we live within our means, ease the burden on taxpayers, and build a welfare system that is fair for the people who need it and the people who fund it.
