Best thing we can offer young people is a job, not benefits, says chancellor

Chancellor John Healey has emphasized that the most valuable asset for young people is not welfare benefits, but employment opportunities. Speaking at Labour's annual conference in Liverpool, Healey argued that cutting welfare spending is not only an economic necessity but also a moral obligation. He announced plans to expand the Local Apprenticeships Service for England's mayors, which he claims will create thousands more apprenticeships for young people.

This expansion is part of a broader strategy to address the issue of "Neets" - the one million young people not in education, employment, or training in the UK. Healey emphasized that this scheme, set to roll out in March 2027, will match young people with employers, including small businesses with no prior experience in hiring trainees.

The scheme will be fully funded by savings from the Department for Work and Pensions, with the chancellor stressing that all government promises will be "built on the rock of fiscal discipline." Healey also promised more investment in British manufacturing, with Rolls Royce committing to a £300 million increase in its British facilities.

Additionally, he announced the reinstatement of the Union Learning Fund in England, a scheme abolished by the previous Conservative government, to help workers gain skills in the face of artificial intelligence's impact on the job market. Despite these measures, Healey acknowledged that the current financial constraints are different from those of the 1990s under New Labour.