Rachel Reeves to announce huge changes to benefits today in major speech

Rachel Reeves will today promise paid work for unemployed young people as part of a new Youth Guarantee.

In a major speech at Labour party conference in Liverpool, the Chancellor will unveil the scheme, along with the threat of benefits sanctions for those who turn it down.

It comes just hours after she told broadcasters the welfare system needed to be reformed, as well as pouring water on the economic agenda of Andy Burnham, who refused on Friday to answer whether he aspired to be Prime Minister.

In her speech, Ms Reeves will say: "I will never be satisfied while too many people’s potential is wasted, frozen out of employment, education, or training. There’s no defending it. It’s bad for business, bad for taxpayers, bad for our economy, and it scars people’s prospects throughout their lives."

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She will set out plans to fund a new Youth Guarantee, where every youngster will be guaranteed a college place or an apprenticeship, or one-on-one support to find a job. And anyone out of work for 18 months will be given a paid work placement.

She will add “Too many people’s potential is wasted.”

The Chancellor will also use her speech to spell out her ambitions to break down barriers for working class children.

She will say: "I believe in a Britain based on opportunity – where ordinary kids can flourish, unhindered by their background. And I believe that Britain’s real wealth is found not only in the success of the fortunate few, but in the talents of all our people, in every part of our great country.”

Labour Party Conference LIVE: Rachel Reeves to announce new benefits sanctions

In a clear carrot and the stick approach, Ms Reeves told Sky News on Monday morning that unemployment benefits are not an “alternative” to work.

She said: “It’s not the case that unemployment benefits or Universal Credit are an alternative to work.”

She said “you can’t say no, I don’t fancy doing that, I’d rather stay on the benefits”.

In a wide-ranging series of interviews, the Chancellor also suggested the Greater Manchester Mayor, Mr Burnham, “risks going the way of Liz Truss” as she warned being Chancellor meant saying “no to good causes” to make sure “the numbers add up.

She said: “If he’s saying… anybody that says you can just borrow more, I do think that risks going the way of Liz Truss.

“I want to bring that debt down. I want bring that debt down I want to bring those borrowing costs down.

“There’s nothing progressive, nothing Labour about that.

The Chancellor also backed the PM’s claim that Reform UK’s controversial policy of scrapping indefinite leave to remain is “racist”.

Ms Reeves told Times Radio: “I’m going to not play the man, I’m going to play the ball, and that policy I believe is a racist policy. That doesn’t mean that people that support Reform are racist, absolutely not.

“But there are lots of people listening, and their neighbour may have been born abroad. They may be married to somebody who was born abroad, a person sitting next to them in the office might have been born abroad.

“But if they are here legally, they are working and they are contributing, I don’t think there is any case to say you’re going to deport that person.”

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