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'Earn or Learn': New Reforms that may cost young people benefits

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In a new government initiative, young people who refuse to work may face the loss of their benefits, according to Work and Pensions Secretary Liz Kendall. Speaking with the BBC, Kendall outlined the government's plans to introduce a "Youth Guarantee" for young people aged 18 to 21. This program will provide the opportunity for youth to either "earn or learn" as part of a nationwide effort to reduce youth unemployment.

A New Opportunity for Young People: Training and Employment

The "Youth Guarantee" aims to offer young people valuable opportunities to gain work experience or pursue vocational training. However, Kendall emphasized that those who refuse to take advantage of these opportunities could risk losing their government benefits. The initiative is designed to help young people improve their employment prospects and earning potential, addressing the long-term risks associated with youth unemployment.

Tackling the Rising Unemployment Rate Among Young People

Recent data highlights a concerning trend, with nearly one million young people in the UK classified as "NEET" (Not in Education, Employment, or Training) between July and September. The new government plan seeks to combat this issue by reforming the apprenticeship system and providing more accessible opportunities for both training and employment, aiming to reduce the number of young people falling into this category.

Addressing the Misuse of Benefits: Stricter Measures Ahead

In an article for the Mail on Sunday, Prime Minister Keir Starmer stressed that the updated benefits system will also focus on curbing the misuse of public funds. While Liz Kendall acknowledged that a small minority of benefit claimants might opt not to work, she reiterated the government's commitment to ensuring that benefits are directed to those who genuinely need them.

Challenges in Reducing Economic Inactivity

The COVID-19 pandemic has had a significant impact on employment, with the number of economically inactive individuals now at 9.3 million, a rise of 713,000 since before the pandemic. Among these, nearly three million individuals are not working due to health-related issues, an increase of 500,000 since 2019.

Kendall pointed out that mental health concerns, both self-diagnosed and professionally diagnosed, are contributing to the growing number of benefit claimants. While previous Conservative-led government plans aimed to reduce incapacity benefits for long-term unemployed individuals, Kendall did not clarify whether Labour would maintain these payments but promised new reforms to address the issue.

Opposition Response to the Reforms

Shadow Housing Secretary Kevin Hollinrake acknowledged that health-related unemployment has worsened in recent years, largely due to the pandemic. He welcomed Labour's focus on this issue but called for practical solutions that would effectively address the growing number of economically inactive individuals.

The "Youth Guarantee" initiative is part of a broader effort by the government to ensure young people have the opportunity to either work or gain valuable skills, while also implementing stricter rules on benefit eligibility.

Source: bbc.co.uk


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