Back-to-work plan | Chancellor unveils scheme for unemployed young people & reforms to visa routes

The Chancellor has announced a package of new employment measures, including a youth jobs guarantee, changes to visa routes, and tougher action on pandemic-related fraud.

Announced by Rachel Reeves during Labour's annual conference, under the new “Youth Guarantee”, young people who have been on Universal Credit for 18 months without work or education will be offered a paid job. The scheme is intended to reduce the risk of long-term unemployment and will build on existing Department for Work and Pensions programmes such as sector-based work academies. Participants will also receive additional support to help them move into lasting employment.

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The government confirmed that the number of people able to come to the UK through high-talent visa routes will double from next year. These routes are open to prize-winning professionals, early-career scientists, graduates from top global universities, and individuals working in creative industries such as design, film and television.

A new investigations team is also being set up to pursue fraudulent claims made under the Covid Bounce Back Loan scheme. Claimants who fail to respond to the voluntary repayment process could face court action, and new powers are being introduced to allow civil penalties to be imposed. Ministers said the changes are designed to improve enforcement and recover more of the funds lost to fraud during the pandemic.