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Labour Chancellor Rachel Reeves Unveils Youth Employment Scheme, Hints at Tax Rises Ahead of November Budget

Published on: 29 September 2025

Labour Chancellor Rachel Reeves Unveils Youth Employment Scheme, Hints at Tax Rises Ahead of November Budget

What we know about Labour's new young employment scheme

During Chancellor Rachel Reeves' media round this morning, one key focus was her announcement of guaranteed paid work placements for young people who've been unemployed for 18 months.

What we know

The scheme will see paid work placements offered to young people to help them secure full-time employment

It will be offered to every young person aged 18 to 21 who has been on Universal Credit for 18 months without "earning or learning"

Those who don't take up the offer without a "reasonable excuse" could face sanctions, like being stripped of their benefits

What we don't know

What the range of jobs placements on offer will be, though Reeves mentioned retail, government and the cultural sector this morning

If young people will have a choice in what placement they accept

What businesses have signed up to the programme, though Reeves has said she has the backing of "business organisations"

What a "reasonable excuse" to opt out of the scheme would look like

Full details will be in November's Budget, when the chancellor sets out the government's tax and spending plans.

[SRC] https://www.bbc.com/news/live/cd073r829jxt?page=3

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