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Labour: We'll scrap benefits for under 25s
Only those in “purposeful” training or carrying out an “intensive” job search would be eligible for the allowance, under proposals being considered by the party
It is understood that Rachel Reeves, the Labour shadow work and pensions secretary, is considering adopting the policy, though is undecided about applying a means test Photo: HEATHCLIFF O'MALLEY FOR THE TELEGRAPH
By James Kirkup
8:37PM GMT 19 Nov 2013
People under the age of 25 would be barred from claiming unemployment benefits under proposals being considered by the Labour Party.
The Institute for Public Policy Research will publish a paper later this week proposing a new means-tested “youth allowance” for 18 to 24-year olds who are not in work or education.
Only those who prove they are in “purposeful” training or carrying out an “intensive” job search would be eligible for the allowance, the group will say.
The allowance would be dependent on family income, with the children of parents earning more than £25,000 a year unable to claim it, the IPPR will suggest.
The youth allowance would be set at £56.80, the same level as Job Seekers’ Allowance.
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Under-25s would be banned from claiming additional benefits including Employment Support Allowance and Income Support. Paying those two benefits to under-25s costs taxpayers almost £1.3 billion a year.
It is understood that Rachel Reeves, the Labour shadow work and pensions secretary, is considering adopting the policy, though is undecided about applying a means test.
Ed Miliband, the Labour leader, has also hinted at taking young people out of the benefits system.
The Conservatives have also suggested stripping benefits from under-25s. David Cameron said last month that if he was re-elected in 2015, he would insist that young people would either “earn or learn”, without the option of claiming welfare.
Signs that Labour is considering a similar policy will put Mr Cameron under pressure to act sooner on the issue, setting up a potential row with the Liberal Democrats.
Countries such as the Netherlands and Denmark have welfare rules that prevent young people claiming conventional benefits. The IPPR found that they have much lower rates of youth unemployment. Only 4 per cent of Dutch youngsters are not in employment or training, and 7 per cent of young Danes. In the UK, the rate is 14 per cent.
Graeme Cooke of the IPPR said the current welfare rules left many young Britons trapped on welfare. “Gaining decent qualifications and practical work experience are the two most important things affecting young people’s job prospects. Yet the current welfare system prevents young people from continuing to study and permits them to spend unlimited periods on benefits without work.”
Labour strategists admit the party has an image problem over welfare, since some voters associate the party with generous benefits.
Adopting the IPPR plan would allow the opposition to claim to be tough on welfare, though some party figures are wary of the means-testing proposal, since it would leave hundreds of thousands of young people without access to State help.
Speaking at his party conference in September, Mr Miliband said: “If the school system fails our young people they shouldn’t be ending up on benefits. They should be ending up in education or training so they can get back on the road to a proper career.”
Mr Cameron last month suggested he would like to change welfare rules so that anyone under 25 should not be able to claim housing or unemployment benefits, forcing them to study, train or get work.
The Prime Minister has asked Sir Jeremy Heywood, the Cabinet Secretary, to review the way the State deals with young people who are not in employment or training, known as NEETs.
Why not go after the bankers whom have cost one HELL of a lot more than £1.3 billion !!!!!!
Labour: We'll scrap benefits for under 25s
Only those in “purposeful” training or carrying out an “intensive” job search would be eligible for the allowance, under proposals being considered by the party
It is understood that Rachel Reeves, the Labour shadow work and pensions secretary, is considering adopting the policy, though is undecided about applying a means test Photo: HEATHCLIFF O'MALLEY FOR THE TELEGRAPH By James Kirkup
8:37PM GMT 19 Nov 2013
People under the age of 25 would be barred from claiming unemployment benefits under proposals being considered by the Labour Party.
The Institute for Public Policy Research will publish a paper later this week proposing a new means-tested “youth allowance” for 18 to 24-year olds who are not in work or education.
Only those who prove they are in “purposeful” training or carrying out an “intensive” job search would be eligible for the allowance, the group will say.
The allowance would be dependent on family income, with the children of parents earning more than £25,000 a year unable to claim it, the IPPR will suggest.
The youth allowance would be set at £56.80, the same level as Job Seekers’ Allowance.
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19 Nov 2013
Under-25s would be banned from claiming additional benefits including Employment Support Allowance and Income Support. Paying those two benefits to under-25s costs taxpayers almost £1.3 billion a year.
It is understood that Rachel Reeves, the Labour shadow work and pensions secretary, is considering adopting the policy, though is undecided about applying a means test.
Ed Miliband, the Labour leader, has also hinted at taking young people out of the benefits system.
The Conservatives have also suggested stripping benefits from under-25s. David Cameron said last month that if he was re-elected in 2015, he would insist that young people would either “earn or learn”, without the option of claiming welfare.
Signs that Labour is considering a similar policy will put Mr Cameron under pressure to act sooner on the issue, setting up a potential row with the Liberal Democrats.
Countries such as the Netherlands and Denmark have welfare rules that prevent young people claiming conventional benefits. The IPPR found that they have much lower rates of youth unemployment. Only 4 per cent of Dutch youngsters are not in employment or training, and 7 per cent of young Danes. In the UK, the rate is 14 per cent.
Graeme Cooke of the IPPR said the current welfare rules left many young Britons trapped on welfare. “Gaining decent qualifications and practical work experience are the two most important things affecting young people’s job prospects. Yet the current welfare system prevents young people from continuing to study and permits them to spend unlimited periods on benefits without work.”
Labour strategists admit the party has an image problem over welfare, since some voters associate the party with generous benefits.
Adopting the IPPR plan would allow the opposition to claim to be tough on welfare, though some party figures are wary of the means-testing proposal, since it would leave hundreds of thousands of young people without access to State help.
Speaking at his party conference in September, Mr Miliband said: “If the school system fails our young people they shouldn’t be ending up on benefits. They should be ending up in education or training so they can get back on the road to a proper career.”
Mr Cameron last month suggested he would like to change welfare rules so that anyone under 25 should not be able to claim housing or unemployment benefits, forcing them to study, train or get work.
The Prime Minister has asked Sir Jeremy Heywood, the Cabinet Secretary, to review the way the State deals with young people who are not in employment or training, known as NEETs.