Chancellor John Healey vows to not write off one million younger folks in main speech – ‘ethical responsibility’
In his first major address to the party’s conference as Chancellor, John Healey unveiled an extra £100million fighting fund to tackle Britain’s ‘Neets’ crisis
John Healey attempted to make the moral case for welfare reform today as he vowed not to write off a million young people who are out of work.
In his first major address to the party’s conference as Chancellor, Mr Healey unveiled an extra £100million fighting fund to tackle Britain’s ‘Neets’ crisis.
He described the cash as “down-payment” on an imminent review by Alan Milburn into the thorny issue of youngsters not in education, employment or training (Neets).
The Chancellor said the scheme – led by mayors with local teams – would help thousands and would be “a bit like football scouts for apprenticeships”. The £100million scheme will be fully funded through fraud and error savings identified by the Department for Work and Pensions (DWP), he added.
An estimated 981,000 youngsters between the ages of 16 and 24 were out of work between April and June – 30,000 higher than a year ago.
Next month Mr Milburn is expected to set out his recommendations to ministers on the issue, which could risk reopening divisions within Labour over welfare. Last year ex-PM Keir Starmer suffered a humiliating backbench rebellion over welfare cuts – forcing him to abandon the controversial plans.
Attempting to make the case for reform, Mr Healey said: “The Tories let the number of young people not in employment, education, or training rise to nearly a million. Two thirds have never worked. Potential wasted. Ambition frustrated. Opportunity closed. Signed off, written off.
“I know it’s tough for young people today. Some find it hard to face the world. And I hear the fear in their mum’s and dad’s voices when they talk about their kids’ futures and the dark forces on the internet.”
And he said: “It’s not progressive to allow a bigger and bigger benefits bill and a system which offers an income but doesn’t offer a future.
“So once again, as a Labour Government it falls to us to act. This is more than an economic must. It’s a moral duty. I refuse to write off a million young people like the Tories did.
Ahead of next month’s high-stakes Budget, Mr Healey also promised more action on the cost-of-living crisis with cash-strapped families struggling with bills.
It comes after Andy Burnham announced a flurry of policies in his first week in Downing Street – including a VAT cut on electricity bills – to ease the burden. The Chancellor told the Labour conference: “Through the core of the Budget I deliver a month today will be fiscal discipline.
“To give families and businesses a bit of breathing space. To drive good growth and jobs in more places. And to write a new chapter of hope for Britain’s future.”
Mr Healey said he understood concern over the cost of living, the insecurity of low-paid work, and the cost for struggling businesses.
But he promised Labour always steps up “when times are tough”. He said: “It was Labour that stepped up to clear the slums and build the council houses during the Great Depression.
“It was Labour that stepped up to build NATO and the NHS after the war. It was Labour that stepped up to lead the world through the global financial crisis. When times are tough, we step up. And now, Conference, we are stepping up again.”
The Chancellor’s speech also followed speculation over the future of the state pension triple lock to help fund Andy Burnham’s proposal to create an NHS-style social care system.
The Prime Minister said on Sunday his final ideas would be put before the country at the next general election, which must take place before summer 2029. The Health Foundation think-tank has estimated a care service – free at the point of use – could cost up to £18.5billion a year in 2035-2036.
Ahead of the Chancellor’s speech, top Cabinet minister Wes Streeting said Mr Burnham would be sticking with Labour’s manifesto pledges from 2024. This included a commitment to maintain the triple lock, which ensures the payment goes up each year by the highest of inflation, earnings, or 2.5%.
Mr Streeting said: “The manifesto was clear on this – we’re committed to the triple lock. And Andy Burnham has been clear that we are standing by our manifesto, so I hope that’s clear.”
But he declined to give a promise whether the triple lock commitment would form part of Labour’s next election manifesto document. He told Times Radio: “I’m not going to write the next manifesto on your radio programme.”
