US EditionNew HMRC plans could see compulsory work schemes for Universal Credit claimants
The Youth Guarantee targets nearly one million unemployed young people on Universal Credit with compulsory paid work after 18 months, with sanctions for refusals, officials said.
- On September 29, 2025, Chancellor Rachel Reeves unveiled the Youth Guarantee, promising paid work for young Universal Credit claimants after 18 months without education or employment.
- The plan addresses the issue of almost one million young people aged 16 to 24 who are not engaged in education, employment, or training, and enhances current employment support programs, with additional information expected to be released at Budget 2025.
- The delivery will be overseen by the government’s employment support agency, utilizing current budgets and integrating sector-specific placements with employer collaboration to support sustained employment transitions.
- Critics on X have described the plan as harsh, arguing it compels young people to accept specific job offers or face the loss of their benefits, with Mike O'Brien characterizing it as forcing individuals to choose the designated employment provided or risk benefit withdrawal.
- Evidence shows such employment schemes raise long-term employment by about 5 to 6 percentage points but are unlikely to be transformative, making effective policy design and employer participation crucial.
22 Articles
22 Articles
New welfare reforms for out of work claimants on way to cut benefits bill
The Government is set to introduce new welfare reforms in a bid to cut the benefits bill and create a new focus on getting claimants into work.The new Work and Pensions Secretary is working with the Chancellor to craft changes to the welfare system as a replacement for the cuts which were announced earlier this year but then swiftly abandoned, thanks to a rebellion from MPs.Reforms will be laid out step by step over time rather than launched in …
Telegraph & Argus
New HMRC plans could see compulsory work schemes for Universal Credit claimants
Young people who has been on Universal Credit for 18 months could be offered guaranteed paid work through a new Youth Guarantee - and if they refuse…
A response to government announcement of work placements for young people on long-term benefits
An assessment of the government's plan to guarantee work placements for long-term unemployed young people by the Institute for Fiscal Studies. The Chancellor has pledged to guarantee paid work for every young person who has been on Universal Credit for 18 months without being in education or employment.
IFS's response to government announcement of work placements for young people on long-term benefits
The Chancellor has pledged to guarantee paid work for every young person who has been on Universal Credit for 18 months without being in education or employment. Reporting this morning suggests that those who refuse to take up the placement without a “reasonable excuse” will face sanctions, including potentially losing their benefits. The Office for National Statistics estimates that nearly one million 16- to 24-year-olds are not in education, e…
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