Young people who refuse to work to lose benefits, says minister

Published On Nov 24, 2024, 7:25 AM

The UK government is launching a 'Youth Guarantee' initiative aimed at providing 18 to 21-year-olds with opportunities to either earn through work or learn through training. Those who do not take advantage of these opportunities risk losing their benefits. The initiative addresses the increasing number of young people, nearly a million, who are currently not engaged in education, employment, or training. Work and pensions secretary Liz Kendall emphasized that the program is designed to prevent long-term career and earnings detriment for young people. Furthermore, the government is seeking to address welfare system reforms and tackle rising economic inactivity.

Stock Forecasts

This initiative may drive increased demand for industries that employ younger individuals, particularly in sectors like retail and services. The focus on training could lead to greater investment in education and vocational programs.

There could also be a potential negative impact on companies relying heavily on low-wage labor, if the labor market tightens following the implementation of this program, potentially increasing labor costs.

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