With an election looming and youth employment still on the rise Labour has taken the bold move of guaranteeing a job for all 18-24 year olds who’ve spent a year on Jobseekers Allowance and anyone over that age who’s spent two years on JSA.

The scheme would guarantee the receiver six months work, at minimum wage, paid for by the taxpayer and the job must be accepted or the claimant would stop receiving their benefits. It’s expected that 80% of the jobs involved would be in the private sector and training would be compulsory.


"Life on benefits will simply not be an option" said Miliband
(credit: BBC)

Labour leader Ed Miliband claimed the scheme would mean that “life on benefits will simply not be an option” and that "those who can work will be required to take up the jobs on offer or lose their benefits". 

Politically the idea is not exactly unanimously supported, with the Conservatives raising questions about how the £5.5bn scheme will be paid for. Labour maintains the program could be supported by changing tax rules on pensions for high earners and a bank bonus tax. The Tories however are keen to point out that the profits of a bank bonus tax have already been allocated in Labour’s pre-election promises, while top figures in banking are warning that if you announce a bonus tax too early the bankers will be easily able to avoid it. This is all a repeat of a 2009-10 bank bonus tax that the Labour Chancellor of the time said would be best to remain a “one off thing”.

Prominent thinktanks have been quick to criticise the plan, for its complexity and the likelihood of it managing to be securely funded. Treasury minister David Gauke added his expertise to the mix saying "This is a more expensive policy than Labour are prepared to acknowledge" he continued "and I am afriad the consequence would be more borrowing."

At this point the scheme seems to lack security and will likely need many modifications before really making a difference in the lives of 18-24 year olds but if you’re one of the 56,000 the scheme could benefit it might just be a ray of hope. Either way it’s the first part of a power struggle towards election that could bring about huge changes in employment structure across the country in the wake of the 2015 election.