Why This Matters: The UK government is facing pressure to reduce public spending while tackling the number of young people not in education, employment or training. Chancellor John Healey says expanding access to jobs and training should be central to that effort.
What happened
Speaking at Labour’s annual conference in Liverpool on Monday, Healey said the best offer for a young person was a first job with training and a wage, rather than a benefit payment.
He said reducing welfare spending was “more than an economic must” and described it as a moral duty. He also warned against allowing the benefits bill to grow without offering young people more opportunities.
Apprenticeship expansion
Healey announced that the Local Apprenticeships Service would be expanded so any English mayor who wants it can use the scheme. The service is scheduled to roll out across England from March 2027.
- Local teams will match young people with employers, including small businesses that have not previously taken on a trainee.
- The Department for Work and Pensions is putting an additional £100m into the scheme.
- The department said the funding would come from savings linked to its crackdown on fraud.
- Mayors will have responsibility for implementing the service in their areas.
Benefits and fiscal pressure
Healey said benefits should be a bridge into work rather than a trap. He did not commit to a timeline for reducing the UK benefits bill by the next election.
His comments came ahead of next month’s Budget, as ministers face pressure to cut public spending or raise taxes to reduce government borrowing costs. Healey said the government’s promises would be based on fiscal discipline and that the Budget would give families and businesses “a bit of breathing space”.
The Conservative Party’s shadow chancellor, Andrew Griffith, criticised the speech, saying Labour MPs would not support cuts to what he called an “out-of-control welfare bill”.
What happens next
A final instalment of a report by former minister Alan Milburn is expected to make recommendations on tackling the number of young people aged 16 to 24 who are not in education, employment or training. Healey said the government would address the issue.
Separately, the chancellor repeated commitments to reindustrialise the UK and said Rolls-Royce would invest a further £300m in its British factories. He also said the Union Learning Fund would be brought back in England, although the article said it was initially unclear how that would be funded.
Bottom Line
Healey is linking welfare reform to employment and apprenticeship opportunities, but the government has not set out a firm timetable for reducing the benefits bill. The expanded apprenticeship service is due to begin its England-wide rollout in March 2027.
Source
This report is based on information published by BBC News.
