Healey says first jobs should replace benefits for young people

Chancellor John Healey has said the government’s priority for young people who are not in education, employment or training should be helping them secure their first job rather than relying on benefit payments. He made the remarks during his first major speech as chancellor at the Labour Party conference in Liverpool.

First job with training and wages

Healey told delegates that “the best thing we can offer a young person isn’t a benefit payment, it’s a first job with training and a wage”. His comments were met with applause as he outlined plans aimed at tackling youth unemployment.

Nearly one million young people affected

The chancellor highlighted the number of young people currently outside education, employment and training, commonly referred to as NEETs. Recent figures put the number at around 981,000, adding pressure on the government to improve pathways into work.

New apprenticeship service announced

Healey announced a new Local Apprenticeship Service that will give mayors £100 million to help connect young people with businesses offering apprenticeships. The scheme is intended to reach young people who may not otherwise have been offered apprenticeship opportunities.

Government pledges industrial expansion

The chancellor also used his speech to outline plans for what he described as a “new age of industrialisation” in Britain. He said the government wanted to increase investment, create jobs and strengthen domestic industry.

Rolls-Royce announces investment

Healey highlighted a planned £300 million investment by Rolls-Royce in factories in Derby, Bristol, Glasgow and Rotherham. He presented the investment as evidence of increased business confidence and part of the government’s wider industrial strategy.

Fiscal rules remain a priority

With his first Budget scheduled for October 28, Healey also pledged to maintain the government’s fiscal rules. His commitment comes as higher borrowing and increased government spending have reduced the financial room available to the Treasury.

Budget faces financial pressure

Government borrowing reached £18.3 billion in August, above forecasts of £15.5 billion, according to figures reported by Reuters. The higher borrowing has added pressure on Healey ahead of the Budget and could limit the government’s ability to increase spending.

Government seeks stronger workforce

Healey’s plans are part of a broader government effort to increase employment and improve access to training. The government has also been considering measures to help workers develop skills needed in areas such as advanced manufacturing and other growing industries.

New industrial strategy

Healey said Britain could not return to the industries of the past but argued that the country’s industrial heritage could be adapted for modern economic needs. His speech linked investment, apprenticeships and skills development to the government’s wider economic plans.

Budget to set next direction

Healey is expected to face difficult choices when he presents his first Budget next month. The government has pledged to maintain fiscal discipline while also pursuing investment, economic growth and employment measures.