Young people who have been on Universal Credit for 18 months could be offered guaranteed paid work through a new Youth Guarantee - and if they refuse they risk losing their benefits.
The plan, unveiled by Chancellor Rachel Reeves at the Labour party conference, forms part of the government’s aim to provide targeted support for young people at risk of long-term unemployment.
But critics have taken to X to complain the proposals are draconian, with one poster saying: "Rachel Reeves' Young Person job guarantee is basically a threat - take the job we tell you to take or lose your benefits."
Rachel Reeves' Young Person job guarantee is basically a threat - take the job we tell you to take or lose your benefits.
— Mike O'Brien🏴#UnpaidCarerAssembly (@Mikeo56977865) September 29, 2025
Labour says the Youth Guarantee will include a targeted backstop, where every eligible unemployed young person on Universal Credit for 18 months without earning or learning will be provided guaranteed paid work.
It is claimed participants of the scheme will receive support to take advantage of available opportunities, with the aim of helping them transition into regular employment.
This will be funded from within existing budgets. Labour says it will set out details at Budget 2025.
Delivery will be led by the Department for Work and Pensions, building on existing employment support and sectoral work placements.
Further details, including eligibility criteria and the structure of placements, will be confirmed at the Autumn Budget following further engagement including with employers and the Devolved Governments.
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School library funding also announced
The Chancellor has also committed over £10 million in funding to guarantee a library for all primary schools by the end of this parliament.
One in seven primary schools in the UK do not have access to a library according to figures from the National Literacy Trust. That rises to one in four for disadvantaged areas, and almost half of schools in England without a library are located in the North.
Research has shown the regional breakdown of primary schools in England that do not have access to a library space
• North East: 18%
• North West: 16%
• West Midlands: 13%
• East Midlands: 12%
• Yorkshire and the Humber: 12%
• South West: 9%
• London: 8%
• East of England: 7%
• South East: 6%
Funding for this scheme will come from £132.5 million of Dormant Assets unlocked to support young people to access opportunities, announced by the Chancellor and the Culture Secretary on June 2 this year.
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