Young people who refuse to work may face benefit cuts under new welfare reforms, the work and pensions secretary, Liz Kendall, has announced. The "earn or learn" scheme will provide training or employment opportunities for 18 to 21-year-olds, with those failing to engage risking the loss of their benefits. These proposals, set to be unveiled on Tuesday, aim to reduce the number of young people out of education, employment, or training, which reached nearly one million between July and September.

The "Youth Guarantee" is designed to tackle long-term unemployment among young people by ensuring access to apprenticeships and training programmes. Kendall highlighted the long-term impact of youth unemployment on career prospects and earnings, framing the reforms as a way to transform opportunities for young people. The plans include changes to the apprenticeship system to improve access and ensure more young people can gain skills or secure employment.

While Kendall recognised that most benefit claimants genuinely require support, she noted that a small minority could work but choose not to. Economic inactivity has risen significantly since the pandemic, with 9.3 million people now out of work and not seeking employment. Of these, nearly three million are unable to work due to ill health, a figure that has increased by 500,000 since 2019.

The reforms also aim to address mental health challenges contributing to economic inactivity. While Kendall acknowledged the severity of the mental health crisis in the UK, she did not confirm whether Labour’s proposals would maintain benefits for all affected individuals. The government has pledged to deliver savings through targeted reforms while tackling the root causes of long-term unemployment.