Photo of Rachel Reeves

When a guarantee is a threat: An argument against the ‘Youth Guarantee’ scheme

Among Rachel Reeves’ many assertions at Monday’s party conference was the introduction of the ‘Youth Guarantee‘ scheme, a design that will “offer” 18-21 year olds, who have been receiving universal credit (UC) for 18 months, a work placement. Reeves touted to her conference that the scheme will lead to the “abolition of long-term youth unemployment;” it seems like a fantastic solution, so why such scepticism? These struggling youths will all be booted from benefits if they decline a role “vital to (labour’s) plans,” according to Reeves. Everyone should try and contribute to society, but who says they aren’t trying? So when Labour forces labour, what does youth employment look like?

On the surface, this project will clear a path for some of the 873,000 18-24 year olds who are unemployed, without being in training or education, to get a free footing in the UK’s inhospitable job market. Reeves presented an assortment of potential routes, including a college or apprenticeship position, or a paid work placement. However, according to gov.uk, these companies can be exempt from paying minimum wage for a government-sponsored “placement” position. They could possibly pay less than the paltry £317 a month UC supplies. Pertinently, although such a prospect may be appealing to companies, Reeves admitted that none have signed up so far! So, in a twist of positivity, Labour is only hypothetically screwing the vulnerable over. 

Critically, disabled youths are the most susceptible to labour exploitation through constantly changing policy choices. The Work Capability Assessment (WCA) is what disabled people use to claim UC and extra money they need due to limited working capacities. The WCA is being merged with the Personal Independence Payment (PIP), a benefit with much stricter eligibility criteria. This means that many disabled people will lose out on the money they need to live, with the charity, Scope, claiming that the 18-21 age group will be “some of the most affected.” Moreover, for those who do get to claim UC, they have a low-paying retail placement to look forward to. It sounds horrible, right? So why are they doing it? It’s simple- they’ll save £4.1 billion, says the Office for Budget Responsibility.

So yes, help getting on a college course or an apprenticeship sounds fantastic, but there will be no bowing that the chancellor so desperately desires. Labour cannot help but beg their conference for praise when helping a struggling group by squashing another. This is a guarantee any youth should accept informedly.

Rachel Reeves (cropped)” by © UK Parliament / Maria Unger is licensed under CC BY 3.0.